Why Is Elevation Oncology Stock Falling In Pre-market?

Elevation Oncology

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(RTTNews) - Elevation Oncology, Inc. (ELEV) announced it has elected to discontinue development of EO-3021. EO-3021 is a Claudin 18.2 antibody-drug conjugate, which Elevation was developing for the treatment of advanced, unresectable or metastatic gastric and gastroesophageal junction cancers. The decision was based on data from the dose escalation and expansion stages of Phase 1 trial.

The company said it will continue to advance EO-1022, a HER3 ADC for the treatment of patients with HER3-expressing solid tumors, and, in parallel, is initiating a process to evaluate strategic options to maximize shareholder value. Elevation Oncology now expects that its cash, cash equivalents, and marketable securities of $93.2 million as of December 31, 2024, will be sufficient to fund its operations into the second half of 2026.

Also, Elevation Oncology is implementing a workforce reduction of approximately 70%. The total cash payments and costs related to this reduction are estimated to be approximately $3 million, with a significant majority of these amounts expected to be paid though the end of June 2025. The company's Chief Medical Officer, Valerie Malyvanh Jansen, will step down, effective March 31, 2025. Jansen will continue to support the company in a consulting capacity.

Shares of Elevation Oncology are down 28% in pre-market trade on Thursday.

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