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Elevation Oncology , Inc. (NASDAQ:ELEV), a small-cap biotech company with a market capitalization of $22.5 million, has terminated its license agreement with CSPC Megalith Biopharmaceutical Co., Ltd., according to a statement filed with the Securities and Exchange Commission. The termination became effective Thursday, June 26. According to InvestingPro data, the company’s stock has declined over 86% in the past year, though it shows strong returns over the past three months.
Under the original license agreement dated July 27, 2022, CSPC granted Elevation Oncology exclusive rights outside of China, Hong Kong, Macau, and Taiwan to develop and commercialize products containing EO-3021, a Claudin 18.2 antibody-drug conjugate intended for cancer treatment. Elevation Oncology previously disclosed on March 20 that it had elected to discontinue development of EO-3021. The company maintains a strong liquidity position, with InvestingPro analysis showing liquid assets exceeding short-term obligations and a current ratio of 19.4.
With the termination, all rights and licenses granted to Elevation Oncology under the agreement have ended, and rights to the licensed intellectual property have reverted to CSPC. The termination agreement includes a mutual release of claims, and no further payments are required between the companies under the license.
This information is based on a press release statement included in Elevation Oncology’s recent SEC filing.
In other recent news, Elevation Oncology has agreed to a merger with Concentra Biosciences, LLC. The deal values Elevation Oncology at $0.36 per share in cash, with an additional non-tradeable contingent value right (CVR) tied to future proceeds from its EO-1022 product. The company’s Board of Directors has unanimously approved the acquisition, which is expected to be completed by July 2025, contingent upon certain conditions. Analysts from TD Cowen have downgraded Elevation Oncology’s stock rating from Buy to Hold, citing the acquisition as the best option for shareholders and noting the company’s limited resources for advancing its ADC program. Similarly, Citizens JMP analysts maintained a Market Perform rating, indicating that the acquisition terms are reasonable and appropriately reflected in the stock’s current trading price. The merger has been structured to include a tender offer for all outstanding shares, with several key stakeholders already agreeing to support the transaction. Additionally, Elevation Oncology has released promising preclinical data for its HER3 ADC, EO-1022, which will be presented at the American Association for Cancer Research Annual Meeting 2025. The data suggests EO-1022 could offer improved efficacy and safety in treating certain solid tumors.
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