Shares drop as Elevation axes Claudin 18.2 ADC, slashes jobs

Discontinuation of EO-3021

Elevation Oncology has decided to discontinue development of EO-3021, their Claudin 18.2 antibody-drug conjugate (ADC) for advanced gastric and gastroesophageal junction cancers1 5. This decision was based on disappointing Phase 1 trial results:

Objective response rate of only 22.2% in biomarker-enriched patients5
Management deemed the efficacy insufficient compared to other Claudin 18.2 ADCs in development3

Job Cuts and Restructuring

Implementing a workforce reduction of approximately 70%1 6
This includes the departure of Chief Medical Officer Dr. Valerie Malyvanh Jansen6
Total costs related to layoffs estimated at around $3 million6

Financial Impact

Stock price dropped significantly (20-47% in various reports) following the announcement3 6 7
Company expects current cash reserves to fund operations into the second half of 20266

Future Plans

Redirecting focus to EO-1022, a HER3 ADC for HER3-expressing solid tumors1 5
Planning to present preclinical data on EO-1022 at AACR Annual Meeting in 20255
Aiming to file an Investigational New Drug application for EO-1022 in 20266
Evaluating strategic options to maximize shareholder value6

This setback for Elevation Oncology follows recent discontinuations of other Claudin 18.2 ADCs by major pharmaceutical companies, potentially raising doubts about this oncology target5.