H.C. Wainwright has reaffirmed a Buy rating and a $46.00 price target on shares of iTeos Therapeutics (NASDAQ: ITOS), following the presentation of positive interim data from a clinical study.
The data, reported by iTeos and its partner GSK, pertained to the Phase 2 GALAXIES Lung-201 study and was disclosed at the 2024 annual Congress of the European Society for Medical Oncology (ESMO) held on September 14.
The study's findings showed encouraging results for the combination therapy of Fc-competent belrestotug (bel) and dostarlimab (dos). As of the data cut-off on June 7, the objective response rate (ORR) was impressive, with 63%, 66%, and 77% at varying doses compared to a 37.5% ORR for the monotherapy cohort. This performance not only met but exceeded the expectations set by the outcomes of similar therapies in the market.
The efficacy data presented positions belrestotug in a favorable light, showcasing a comparable performance to Roche's Fc-competent tiragolumab, which achieved a 66% ORR when used in conjunction with atezolizumab in patients with PD-L1-high NSCLC. This benchmark comparison highlights the competitive potential of the iTeos and GSK therapy.
Based on these strong efficacy data, the two companies have proceeded to initiate a Phase 3 registrational study, GALAXIES Lung-301, to further evaluate the treatment. This advancement into Phase 3 trials signifies a critical step towards potential commercialization and underscores the therapy's promise.
In other recent news, iTeos Therapeutics has made significant strides in a Phase 2 lung cancer study. The interim data from this study, known as GALAXIES Lung-201, will be presented at the upcoming European Society for Medical Oncology Congress.
The study evaluates the combination of belrestotug and dostarlimab in treating PD-L1 high non-small cell lung cancer.
iTeos Therapeutics also reported a first-quarter net loss of $1.07 per share for 2024, slightly above the projected net loss of $0.98 per share. Additionally, the company announced a $120 million stock sale involving over 1.1 million shares of common stock, with proceeds intended to support the progress of iTeos' clinical programs and general corporate purposes.
In analyst coverage, Wells Fargo initiated an Overweight rating on iTeos Therapeutics, setting a price target of $31.00. Similarly, H.C. Wainwright reaffirmed a Buy rating on the company, raising the price target from $44.00 to $46.00.
iTeos Therapeutics recently appointed Dr. David Feltquate as its new Chief Medical Officer. In corporate developments, the company held its Annual Meeting of Stockholders, resulting in the election of two Class I directors, Jill M. DeSimone and David K. Lee.
Deloitte Bedrijfsrevisoren / Réviseurs d’Entreprises BV/SRL was ratified as the company's independent auditor for the upcoming fiscal year.
InvestingPro Insights
Amidst the positive clinical study outcomes and the advancement of iTeos Therapeutics (NASDAQ:ITOS) into Phase 3 trials, InvestingPro data reveals a mixed financial landscape for the company. With a market capitalization of approximately $609.91 million, iTeos holds a P/E ratio of -5.8, reflecting investor anticipation of future growth despite current unprofitability. The company's revenue for the last twelve months stands at $35 million, though it has experienced a significant revenue decline of 59.3% during the same period. This contraction in revenue underscores the critical importance of successful clinical trials and subsequent commercialization for the company's financial turnaround.
InvestingPro Tips suggest that while iTeos has more cash than debt on its balance sheet, a strong liquidity position, it is also quickly burning through cash, which raises concerns about long-term financial sustainability. Analysts have tempered their expectations, with some revising earnings downwards for the upcoming period and projecting a net income drop this year. Despite these challenges, the company's large price uptick of 54.49% over the last six months indicates growing investor confidence, likely spurred by the recent clinical achievements.
For investors seeking a deeper dive into iTeos Therapeutics' prospects, InvestingPro offers additional tips, with 9 more insights available that could further inform investment decisions. The full array of expert analysis and data can be found at InvestingPro's dedicated iTeos page (https://www.investing.com/pro/ITOS).
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