iTeos Therapeutics downgraded to Neutral at JPMorgan after TIGIT program ended

As previously reported, JPMorgan downgraded iTeos Therapeutics (ITOS) to Neutral from Overweight with a price target of $8, down from $15, following the termination of iTeos’ partnered TIGIT program for belrestotug. The press release was brief, but the joint decision with its partner GSK (GSK) appears to be driven by the lack of clinically meaningful progression-free survival improvement observed in the Phase 2 Lung-201 study, the analyst says. Most investors have already thrown in the towel on TIGIT, so the decision to terminate the partnership was viewed as “a relief” to preserve resources for its Phase 1-stage pipeline, but the firm believes iTeos shares will remain range bound following the rally this morning, the analyst added.