iTeos Therapeutics Winds Down Operations Following TIGIT Setback

GSK Partnership Termination Leads to Swift Closure

iTeos Therapeutics, a Belgium-based biotech company, has announced its decision to wind down operations and liquidate assets following the termination of its partnership with GSK on the TIGIT inhibitor belrestotug. This rapid turn of events comes just two weeks after disappointing clinical trial results led to the axing of the program.

Clinical Trial Disappointment and Financial Implications

The company's downfall was precipitated by progression-free survival data from multiple phase 2 trials that fell short of clinically meaningful levels. This setback not only led to the termination of the GSK partnership but also prompted iTeos to take immediate steps to conserve cash and explore strategic alternatives.

iTeos ended March with a substantial cash reserve of $624.3 million. However, the wind-down process is expected to incur significant costs:

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

Asset Sales and Shareholder Value

In an effort to maximize shareholder value, iTeos is actively seeking buyers for its remaining pipeline assets:

• EOS-984: A phase 1 ENT1 inhibitor for oncology
• EOS-215: A phase 1 anti-TREM2 antibody for oncology
• A preclinical obesity program targeting ENT1

The company aims to return as much of its cash reserves to investors as possible through these asset sales and the liquidation process.

Swift Closure and Market Response

iTeos expects to substantially complete the wind-down of its operations in the third quarter of 2025, with clinical development activities taking slightly longer to conclude. This accelerated timeline for closure is notably faster than typical industry practices, which often involve prolonged searches for strategic alternatives or pivots to backup assets.

The market responded positively to the news of iTeos' planned liquidation, with shares jumping 28% to nearly $11 in premarket trading. This reaction suggests that investors view the company's decision to return capital as the best path forward given the circumstances.