iTeos Therapeutics: ESMO Data Showing Signs Of A Real Win For TIGIT

Core Insights - iTeos Therapeutics is focusing on immunotherapy with a specific emphasis on a molecule targeting TIGIT, particularly in lung cancer, with recent findings presented at ESMO 2024 [2][8] Pipeline Updates - The lead product candidate, belrestotug, is an anti-TIGIT antibody intended to enhance antitumor immunity, especially when combined with dostarlimab (GSK's Jemperli) [3] - The GALAXIES-Lung-301 trial is a pivotal phase 3 study comparing belrestotug plus pembrolizumab against a placebo in patients with advanced, PD-L1-high non-small cell lung cancer (NSCLC) [3][4] - ESMO 2024 revealed initial findings from the GALAXIES Lung-02 study, showing response rates for dostarlimab alone at 37.5%, while combinations with belrestotug yielded response rates between 63.3% and 76.7% [4] Financial Overview - As of the latest quarterly filing, iTeos Therapeutics reported $251.1 million in cash and equivalents, alongside$320.2 million in short-term investments [5] - The company recognized $35 million in collaboration revenue from a milestone payment for the phase 3 trial initiation, with operating expenses of$49.2 million, resulting in a net loss of $7.1 million for the quarter [6] - The adjusted cash burn rate is approximately$42.1 million, indicating a cash runway of 14 to 15 quarters [6] Strengths and Risks - The company has sufficient cash to reach critical milestones, with over three years of cash runway, which is favorable for pursuing necessary data readouts [7] - Clinical activity indicators are strong, with promising response rates from the ESMO data suggesting potential in the TIGIT story for lung cancer [7] - However, there are concerns regarding response rates as a surrogate endpoint and increased treatment-related adverse events, which could impact approval prospects [7] - The patient population for the trial is limited, as only a fraction of advanced NSCLC patients meet the PD-L1 criteria for enrollment [7] Bottom-Line Summary - The data presented at ESMO 2024 indicates significant clinical activity for the anti-TIGIT therapy, suggesting potential upside for iTeos Therapeutics, which is currently valued at around $600 million [8] - Despite preliminary findings and safety concerns, the data aligns with recent trends in improving anti-PD-1 therapy, indicating a promising investment thesis for the company [8]