iTeos plans $120M offering after TIGIT inhibitor interim data check

Shares of iTeos Therapeutics surged over 40% on Friday following promising interim results from its Phase II lung cancer trial. The trial tested the combination of iTeos' anti-TIGIT antibody belrestotug (EOS-448) and GSK’s PD-1 inhibitor Jemperli (dostarlimab). The combination exceeded the interim efficacy threshold, demonstrating significant tumor reduction in patients with PD-L1-high, first-line non-small-cell lung cancer (NSCLC).

The success led iTeos to launch a $120-million registered direct offering. This initiative, led by current investors RA Capital Management and Boxer Capital, includes the release of approximately 1.1 million shares at $17.50 each, representing a 44% premium based on the closing price on May 9. Additionally, pre-funded warrants for up to 5.7 million more shares will be offered at the same price.

The GALAXIES Lung-201 study assessed the efficacy and safety of the belrestotug and Jemperli combination. The interim results surpassed predefined criteria, indicating clinically meaningful tumor reduction and an acceptable safety profile. iTeos plans to disclose the detailed interim data in the latter half of the year. CEO Michel Detheux expressed confidence in the results, highlighting the importance of high-quality components in their TIGIT/PD-1 doublet therapy, which he believes could yield differentiated clinical outcomes.

Interest in TIGIT inhibitors had waned after Roche's tiragolumab encountered several clinical setbacks in 2022. However, the accidental disclosure of positive overall survival data from a Phase III NSCLC trial last year reignited optimism in the potential of this immunotherapy target. Detheux had previously indicated that iTeos' screening tests showed belrestotug to be highly distinct from other TIGIT inhibitors, with potential applications in various combination therapies.

iTeos' clinical strategy reflects Detheux's confidence, encompassing a broad range of trials for belrestotug. The TIGIT and Jemperli combination is currently being tested in several studies, including NSCLC, head and neck squamous cell carcinoma (HNSCC), and other advanced solid tumors. Some trials also incorporate additional inhibitors like CD96 or PVRIG to further enhance the therapeutic effect.

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