Analyst Andrew Berens from Leerink Partners maintained a Hold rating on Elevation Oncology (ELEV – Research Report) and decreased the price target to $1.00 from $9.00.
Andrew Berens has given his Hold rating due to a combination of factors surrounding Elevation Oncology’s recent strategic decisions and clinical trial outcomes. The company announced the discontinuation of its EO-3021 program, a Claudin 18.2 antibody-drug conjugate, following disappointing Phase 1 trial results where the objective response rate significantly declined. This decision reflects the company’s assessment that EO-3021 does not offer a competitive advantage over other similar therapies in development.
In light of these developments, Elevation Oncology is reducing its workforce by approximately 70% and is exploring strategic options to enhance shareholder value. The focus is now shifting to their preclinical HER3 ADC candidate, EO-1022, which is still in the early stages of development. Given the uncertainty surrounding EO-1022’s future potential and the company’s strategic direction, Berens has opted for a cautious approach, adjusting the price target from $9 to $1 and moving the rating to Hold until more clarity is obtained.