Elevation Oncology (ELEV) has made significant progress in 2024, particularly with its antibody-drug conjugate programs targeting Claudin-18.2 and HER3.
Pipeline Updates
ELEV’s flagship project, EO-3021, is an antibody-drug conjugate targeting Claudin-18.2, a marker expressed on a wide range of solid tumors. The phase 1 study is ongoing, with data expected mid-2024 and a more complete readout in early 2025.
ELEV also presented preclinical data at AACR 2024 showing proof of concept for its anti-HER3 ADC program. The company expects to nominate a candidate for clinical development later in 2024.
Financial Overview
ELEV has a strong cash position of ~$80 million, providing a runway until Q4 2025. The net loss for the quarter was $7.9 million, indicating a modest cash burn rate.
Strengths and Risks
ELEV has positioned itself to be among the first companies to exploit ADC technology in the targeting of Claudin-18.2. However, the company’s antibody-drug conjugates use a different payload than the blockbuster deruxtecan, introducing some uncertainty. The company’s cash position is strong but limited, and the market may not be impressed by early data readouts.
Analyst’s Disclosure
This article is based on the author’s own opinions and does not constitute financial advice. The author has no stock or other interest in ELEV.
Bottom-Line Summary
While ELEV’s pipeline projects remain in early days, the market is showing strong interest in the ADC space, leading to outsized valuations for companies with promising early data. ELEV is in a prime position to benefit from this trend. The author rates ELEV as a “Buy,” suggesting that investors consider the stock for a speculative position.
