Elevation Oncology Plunges 42% on Ending Development of Lead Drug

Core Viewpoint - Elevation Oncology's shares dropped over 40% following disappointing phase I study results for its lead drug EO-3021, which showed an objective response rate of only 22.2% in patients with advanced gastric and gastroesophageal junction cancers [1][2]. Company Developments - Following the poor study results, Elevation Oncology has decided to halt further clinical development of EO-3021 and will focus on a new solid tumor candidate, EO-1022, with an IND filing expected next year [2]. - The company is now without any pipeline candidates in clinical development, contributing to the significant decline in share price [2]. - Elevation Oncology plans to reduce its workforce by 70% as part of a restructuring effort to cut costs, which includes the departure of its Chief Medical Officer [5]. - The restructuring is expected to incur around $3 million in costs, primarily by the end of June [6]. Financial Performance - Year-to-date, Elevation Oncology's shares have decreased nearly 51%, contrasting with a 7% growth in the industry [3]. - The company has a cash balance of approximately $93 million as of the end of 2024, which is projected to last into the second half of 2026 following the restructuring [5].