iTeos Therapeutics Winds Down Operations Following TIGIT Setback

GSK Partnership Termination Leads to Swift Closure

In a surprising turn of events, iTeos Therapeutics has announced its decision to wind down operations, just two weeks after terminating its partnership with GlaxoSmithKline (GSK) on the TIGIT inhibitor belrestotug. The Belgium-based biotech company plans to sell its assets and return a significant portion of its substantial cash reserves to investors.

Financial Implications and Asset Liquidation

iTeos ended March with $624.3 million in cash, positioning the company for a potentially significant return to shareholders. However, the wind-down process will incur considerable costs:

• Employee termination expenses are estimated between $21.8 million and $24.7 million
• Additional undisclosed costs for contract and lease terminations
• Approximately $11.1 million allocated for winding down other clinical development programs

The company is actively seeking buyers for its remaining pipeline assets, including:

• EOS-984, an ENT1 inhibitor in phase 1 for oncology
• EOS-215, an anti-TREM2 antibody also in phase 1 for oncology
• A preclinical obesity program targeting ENT1

Clinical Trial Disappointments and Rapid Decision-Making

The catalyst for iTeos' closure was the disappointing progression-free survival data from belrestotug trials. Both iTeos and GSK deemed the results clinically insignificant, leading to the termination of the program. This setback, combined with underwhelming data from another phase 2 trial, prompted the swift decision to shutter operations.

Michel Detheux, CEO of iTeos, stated, "While this decision was difficult, we believe it is in the best interest of our shareholders to wind down operations and return capital in a timely manner."

Market Response and Timeline

The announcement of iTeos' closure led to a surprising 28% jump in premarket trading, with shares rising to nearly $11. The company expects to substantially complete the wind-down of its operations by the third quarter of 2025, although clinical development activities may take longer to conclude fully.

This rapid closure process stands in stark contrast to typical biotech industry practices, where companies often engage in prolonged searches for strategic alternatives or pivot to backup assets when faced with setbacks.