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Investing.com -- Shares of Elevation Oncology , Inc. (NASDAQ:ELEV) fell by 20% following the announcement that the company will discontinue the development of its drug candidate EO-3021. The decision came after clinical trial results demonstrated an objective response rate (ORR) of 22.2% in a biomarker-enriched patient population, which the company deemed insufficient compared to other drugs in development.
The Boston-based biopharmaceutical company, known for its focus on developing selective cancer therapies, shared the news on March 20, 2025, causing a significant decline in its stock price. The discontinued EO-3021 was an antibody-drug conjugate (ADC) aimed at treating advanced gastric and gastroesophageal junction cancers. Despite showing a differentiated safety profile, the efficacy data did not meet the company’s criteria for a competitive benefit-risk profile.
In the wake of discontinuing EO-3021, Elevation Oncology is redirecting its efforts towards advancing EO-1022, a HER3 ADC, which they believe has the potential to address unmet needs in HER3-expressing cancers. Preclinical data for EO-1022 are scheduled for presentation at the AACR Annual Meeting in 2025, with plans to file an Investigational New Drug (IND) application in 2026.
The company’s President and CEO, Joseph Ferra, expressed disappointment with the Phase 1 trial results but reaffirmed the company’s commitment to advancing EO-1022. Alongside the clinical updates, Elevation Oncology announced a significant workforce reduction of approximately 70%, with associated costs estimated at around $3 million, primarily to be paid by the end of June 2025. This reduction includes the departure of Chief Medical (TASE:BLWV) Officer, Dr. Valerie Malyvanh Jansen, effective March 31, 2025, although she will continue to support the company in a consulting role.
Elevation Oncology expects its current cash reserves to fund operations into the second half of 2026. The company is also exploring strategic options to maximize shareholder value while advancing its remaining pipeline. Despite the setback with EO-3021, the firm remains focused on its mission to develop novel treatments for cancer patients with significant unmet medical needs.
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