iTeos, GSK End Collaboration On Experimental Cancer Therapy Development: But Retail’s Extremely Bullish

Shares of iTeos Therapeutics, Inc. (ITOS) rocketed 20% on Tuesday morning after the company announced it has decided to terminate its collaboration with British pharmaceutical major GSK Plc for the development of its experimental cancer therapy Belrestotug.

The two companies were working together assessing the Belrestotug + Dostarlimab doublet in previously untreated, unresectable, locally advanced or metastatic PD-L1 high non-small cell lung cancer.

However, data from a Phase 2 study did not show improvements in progression-free survival with the combination compared to Dostarlimab monotherapy. Hence, the two companies have decided to end the collaboration and terminate the program.

iTeos also ended new enrollment for a phase 3 trial of the combination.

GSK is communicating with investigators, institutional review boards, ethics committees, and health authorities about next steps for the appropriate management of currently enrolled patients, iTeos said.

iTeos CEO Michel Detheux said the company is “truly disappointed” by the trial results. The firm is taking “immediate steps” to preserve capital and maximise shareholder value and has engaged TD Cowen to advise on the process.

“...given current market conditions and our appreciation of the responsibility to our valued shareholders, we believe the best path forward is to promptly evaluate a full range of strategic alternatives to unlock the value of our assets,” Detheux said, while adding that the company has a strong balance sheet to enable it to pursue opportunities.

On Stocktwits, retail sentiment around ITOS jumped from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours while message volume rose from ‘normal’ to ‘high’ levels.

ITOS stock is up by about 5% this year but has declined by about 52% over the past 12 months.

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