iTeos Therapeutics Inc. Faces Setbacks in Clinical Trials

iTeos Therapeutics Inc., a clinical-stage biopharmaceutical company specializing in immuno-oncology therapeutics, has recently encountered significant setbacks in its clinical trials. The company, based in Cambridge, United States, and listed on Nasdaq, has seen its stock react to these developments.

Clinical Trial Results and Program Termination

The GALAXIES Lung-201 study, which evaluated the combination of Belrestotug and Dostarlimab for first-line treatment of non-small cell lung cancer patients with high PD-L1 expression, did not meet the predefined criteria for clinically meaningful improvements in progression-free survival. As a result, iTeos and its partner, GlaxoSmithKline (GSK), have agreed to terminate the Belrestotug development program. This decision was announced across multiple financial news platforms, including FinanzNachrichten, Investing.com, and Globenewswire.

Impact on Stock Ratings and Price Targets

Following the disappointing trial results, several financial analysts have adjusted their ratings and price targets for iTeos Therapeutics. JPMorgan has downgraded the stock rating to neutral with a target price of $8. Similarly, Piper Sandler has reduced its price target from $16 to $12. Despite these setbacks, iTeos stock experienced a surge, attributed to the company’s solid cash reserves and potential liquidation value, as reported by Yahoo Finance.

Further Developments

In addition to the Belrestotug program, iTeos and GSK have also decided to shelve their anti-TIGIT drug following another study setback. This decision was highlighted by Biopharmadive and Nasdaq, noting that the Phase 2 lung study missed its progression-free survival endpoint. GSK has confirmed the termination of the Belrestotug development program, as reported by FinanzNachrichten, citing a new interim analysis of Phase 2 studies.

Company Overview

iTeos Therapeutics Inc. operates in the health care sector, focusing on immuno-oncology therapeutics. As of May 8, 2025, the company’s close price was $6.67, with a market capitalization of approximately $287.05 million. The company’s price-to-earnings ratio stands at -2.46, reflecting its current financial challenges.

These developments mark a significant shift in iTeos Therapeutics’ strategic direction, as the company navigates the challenges posed by the clinical trial outcomes and reassesses its future in the immuno-oncology space.