Elevation Oncology Reports Fourth Quarter and Full Year 2024 Financial Results and Highlights Recent Business Achievements

Rhea-AI Summary

Elevation Oncology (NASDAQ: ELEV) reported its Q4 and full-year 2024 financial results, highlighting progress in its cancer therapy programs. The company's lead program, Claudin 18.2 ADC EO-3021, is advancing with ongoing combination therapy trials for gastric/GEJ cancer, with initial data expected in Q4 2025 or Q1 2026.

Key financial metrics include:

• Cash position of $93.2 million as of December 31, 2024
• Q4 2024 R&D expenses increased to $6.6 million from $4.7 million in Q4 2023
• Q4 2024 net loss of $10.4 million compared to $7.9 million in Q4 2023

The company implemented prospective Claudin 18.2 expression testing and initiated dosing in combination cohorts with dostarlimab and ramucirumab. Additionally, Elevation nominated HER3 ADC EO-1022 as a development candidate for HER3-expressing solid tumors, with plans to file an IND application in 2026. Current cash runway extends into 2026.

Positive

• Cash position increased to $93.2M from $83.1M year-over-year
• Raised $44.2M through ATM facility in H1 2024
• Strong preclinical data showing 92% complete response rate for EO-3021/PD-1 inhibitor combination
• Cash runway extended into 2026

Negative

• Net loss increased to $10.4M from $7.9M in Q4 2023
• R&D expenses increased 40% to $6.6M in Q4 2024
• G&A expenses rose to $4.0M from $3.3M in Q4 2023

Insights

Biotech Analyst

Elevation Oncology's Q4/FY 2024 results reveal a biotech executing a strategically focused clinical development plan with improving financial stability. The company is making calculated moves with its lead Claudin 18.2 ADC program (EO-3021) by pursuing a first-mover advantage in combination therapy for gastric/GEJ cancer, a significant global unmet need.

The implementation of prospective Claudin 18.2 expression testing represents a sophisticated clinical approach—broadening patient eligibility criteria while still maintaining focus on likely responders. This balanced patient selection strategy enhances both the commercial potential and probability of clinical success.

The preclinical combination data is particularly compelling, with 92% complete response rates when EO-3021 was combined with PD-1 inhibitors—significantly outperforming either agent alone. This suggests strong potential for synergistic efficacy in first and second-line treatment settings, where market opportunity is substantially larger than in later lines.

Financially, the $93.2M cash position (up from $83.1M YoY) provides runway into 2026, strategically aligning with multiple data catalysts including monotherapy data (Q2 2025) and combination data (Q4 2025/Q1 2026). While R&D expenses increased to $28.6M (from $25.4M) and quarterly net loss widened to $10.4M, these increased investments directly support pipeline advancement.

The nomination of HER3 ADC (EO-1022) diversifies their pipeline beyond gastric cancer into breast and lung cancers, targeting a broader range of HER3-expressing solid tumors and reducing single-asset risk. The timeline for IND filing in 2026 aligns with the company's financial runway, demonstrating disciplined pipeline management.

Financial Analyst

Elevation Oncology's Q4/FY 2024 results reveal a significant financial dichotomy – the company holds $93.2M in cash (up from $83.1M YoY) yet trades at just $30.2M market cap, creating a negative enterprise value that signals substantial investor skepticism despite clinical progress.

The $44.2M ATM raise completed in H1 2024 strategically extended runway into 2026, providing coverage for multiple clinical readouts. With quarterly cash burn at approximately $10.4M, the company has secured roughly 9 quarters of operational runway without requiring immediate additional financing – a notable achievement for a clinical-stage oncology company.

R&D expenses increased to $28.6M for 2024 (vs $25.4M in 2023), representing disciplined investment in pipeline advancement. However, G&A expenses at $16.1M annually ($4.0M quarterly) appear relatively high for a company at this stage, comprising nearly 36% of total operating expenses – suggesting potential opportunities for operational efficiency improvements.

The company's strategic focus on earlier treatment lines is financially sound, as first/second-line gastric cancer represents a substantially larger commercial opportunity than later-line settings. The addition of the HER3 ADC program further diversifies risk, with development timelines aligned to financial resources.

While the improved cash position and extended runway are clear positives, the widening quarterly net loss ($10.4M vs $7.9M in Q4 2023) and significant market discount to cash indicate persistent investor concerns about clinical and commercial viability that management must address through upcoming data readouts to unlock shareholder value.

-- Dosing ongoing in Phase 1 clinical trial cohorts evaluating Claudin 18.2 ADC EO-3021 in combination with ramucirumab or dostarlimab in patients with advanced gastric/gastroesophageal junction (GEJ) cancer --

-- Expect to report initial data from combination cohorts in 4Q 2025 or 1Q 2026 --

-- On-track to report additional monotherapy data from dose escalation and expansion cohort of ongoing Phase 1 clinical trial in 2Q 2025 --

-- Preclinical data for HER3 ADC EO-1022 to be presented at American Association for Cancer Research (AACR) Annual Meeting 2025; plan to file an Investigational New Drug (IND) application in 2026 --

BOSTON, March 6, 2025 /PRNewswire/ -- Elevation Oncology, Inc. (Nasdaq: ELEV), an innovative oncology company focused on the discovery and development of selective cancer therapies to treat patients across a range of solid tumors with significant unmet medical needs, today announced financial results for the quarter and full-year ended December 31, 2024, and highlighted recent business achievements.

"We continue to advance our Claudin 18.2 ADC program, EO-3021, for the treatment of advanced gastric/GEJ cancer in the earlier lines settings," said Joseph Ferra, President and Chief Executive Officer of Elevation Oncology. "Based on the competitive anti-tumor activity and differentiated safety profile observed to date, we believe EO-3021 has the potential to benefit a broad patient population. Currently, we are evaluating EO-3021 in combinations with approved therapies in the first- and second-line settings, where we have a first-mover advantage and the opportunity to address significant markets, while also progressing our monotherapy cohort toward an additional data readout in the second quarter of 2025."

Mr. Ferra continued, "In the first quarter, we introduced prospective Claudin 18.2 testing to the monotherapy dose expansion cohort of our ongoing Phase 1 trial. This will further enhance our understanding of the patients most likely to benefit from treatment with our ADC and ultimately inform the design of future registrational studies. In addition, we continue to develop our HER3 ADC EO-1022 for the treatment of a wide range of HER3-expressing solid tumors and look forward to sharing preclinical data at the AACR Annual Meeting next month. We believe both EO-3021 and EO-1022 have the potential to elevate cancer care and are eager to share updates on both programs as we move through 2025."

Recent Business Achievements

Claudin 18.2 ADC EO-3021:

• In January 2025, Elevation Oncology implemented prospective Claudin 18.2 expression testing as part of the patient screening process in its ongoing Phase 1 clinical trial of monotherapy EO-3021. The dose expansion portion of the trial is now enrolling patients with ≥ 25% of tumor cells at IHC 1+/2+/3+, representing a moderately broader population compared to the exploratory efficacy analysis, which will continue to include patients with ≥ 20% of tumor cells at IHC 2+/3+.
• In January 2025, Elevation Oncology initiated dosing in the combination cohorts of its Phase 1 clinical trial of EO-3021. The combination cohorts are evaluating EO-3021 in combination with dostarlimab, a PD-1 inhibitor, in the first-line setting and with ramucirumab, a VEGFR2 inhibitor, in the second-line setting for the treatment of advanced gastric/GEJ cancer.
• In December 2024, Elevation Oncology presented preclinical proof-of-concept data supporting the combination potential of EO-3021 with VEGFR2 or PD-1 inhibitors at the ESMO Immuno-Oncology Annual Congress 2024 (ESMO-IO). The in vivo data showed:
  • Treatment with EO-3021 and DC101, a surrogate of VEGFR2 inhibitor ramucirumab, exhibited statistically superior tumor growth inhibition (TGI) compared to treatment with either EO-3021 or DC101 alone (TGI: 88.2% for EO-3021 in combination with DC101, compared to 20.1% for EO-3021 and 59.2% for DC101 alone).
  • Treatment with EO-3021 and a PD-1 inhibitor exhibited statistically superior TGI compared to treatment with either EO-3021 or a PD-1 inhibitor alone (TGI: 79.9% for EO-3021 in combination with a PD-1 inhibitor, compared to 33.8% for EO-3021 and 25.0% for a PD-1 inhibitor alone). 92% (11/12) of mice treated with the combination of EO-3021 and a PD-1 inhibitor achieved a complete response (CR), compared to 50% (6/12) mice treated with EO-3021 monotherapy and 17% (2/12) mice treated with a PD-1 inhibitor alone.

HER3 ADC EO-1022:

• In December 2024, Elevation Oncology nominated EO-1022 as its HER3 ADC development candidate for the treatment of HER3-expressing solid tumors including breast cancer and non-small cell lung cancer. EO-1022 is designed to be a differentiated HER3 ADC, leveraging seribantumab's desirable internalization properties, the latest site-specific ADC technology and the MMAE payload.

Expected Upcoming Milestones

EO-3021:

• Report additional safety and efficacy data from the ongoing Phase 1 clinical trial of monotherapy EO-3021, including from the dose escalation and expansion cohorts, in the second quarter of 2025.
• Report initial data from the combination cohorts of the Phase 1 clinical trial of EO-3021 in the fourth quarter of 2025 or the first quarter of 2026.

EO-1022:

• Present preclinical data for EO-1022 at AACR Annual Meeting in the second quarter of 2025.
• File an IND application for EO-1022 in 2026.

Fourth Quarter and Full Year 2024 Financial Results

As of December 31, 2024, Elevation Oncology had cash, cash equivalents and marketable securities totaling $93.2 million, compared to $83.1 million as of December 31, 2023. The increase in cash reflects net proceeds of $44.2 million, which Elevation Oncology raised through its at-the-market (ATM) facility in the first half of 2024, partially offset by cash used to fund operating activities.

Research and development (R&D) expenses for the fourth quarter of 2024 were $6.6 million, compared to $4.7 million for the fourth quarter of 2023. The increase in R&D expenses in the fourth quarter of 2024 was primarily due to increased clinical trial expenses for the lead program EO-3021. For the year ended December 31, 2024, R&D expenses were $28.6 million, compared to $25.4 million for the year ended December 31, 2023. The increase was primarily driven by continuous investment in the lead and pipeline programs.

General and administrative (G&A) expenses for the fourth quarter of 2024 were $4.0 million, compared to $3.3 million for the fourth quarter of 2023. The increase in G&A expenses in the fourth quarter of 2024 was primarily due to increased personnel costs, including stock compensation expenses. For the year ended December 31, 2024, G&A expenses were $16.1 million, compared to $14.9 million for the year ended December 31, 2023. The increase was primarily due to increased professional fees and personnel expenses, partially offset by a decrease in premiums paid on directors' and officers' insurance.

Net loss for the fourth quarter of 2024 was $10.4 million, compared to $7.9 million for the fourth quarter of 2023.  

Financial Outlook

Elevation Oncology expects that its cash, cash equivalents and marketable securities as of December 31, 2024, will be sufficient to fund its current operations into 2026.

About Elevation Oncology, Inc.

Elevation Oncology is an innovative oncology company focused on the discovery and development of selective cancer therapies to treat patients across a range of solid tumors with significant unmet medical needs. We are leveraging our ADC expertise to advance a novel pipeline, initially targeting two clinically validated targets in oncology, Claudin 18.2 and HER3. Our lead candidate, EO-3021, is a potential best-in-class Claudin 18.2 ADC and is currently being evaluated in a Phase 1 trial (NCT05980416) as a monotherapy, and in combinations with dostarlimab or ramucirumab, in patients with advanced, unresectable or metastatic gastric/gastroesophageal adenocarcinoma. We are also advancing EO-1022, a HER3 ADC for the treatment of patients living with solid tumors that express HER3, through preclinical development. For more information, visit www.ElevationOncology.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, anticipated clinical and preclinical development activities, expected timing of announcements of clinical and preclinical results, potential benefits of product candidates, potential market opportunities for product candidates, the ability of product candidates to treat their targeted indications and Elevation Oncology's expectations about its cash runway. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These forward-looking statements may be accompanied by such words as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "might," "plan," "possible," "potential," "will," "would," and other words and terms of similar meaning. Although Elevation Oncology believes that the expectations reflected in such forward-looking statements are reasonable, Elevation Oncology cannot guarantee future events, results, actions, levels of activity, performance or achievements, and the timing and results of biotechnology development and potential regulatory approval are inherently uncertain. Forward-looking statements are subject to risks and uncertainties that may cause Elevation Oncology's actual activities or results to differ significantly from those expressed in any forward-looking statement, including risks and uncertainties related to Elevation Oncology's ability to advance its product candidates, the timing and results of preclinical studies and clinical trials, approvals and commercialization of product candidates, the receipt and timing of potential regulatory designations, Elevation Oncology's ability to fund development activities and achieve development goals, Elevation Oncology's ability to protect intellectual property, Elevation Oncology's ability to establish and maintain collaborations with third parties, and other risks and uncertainties described under the heading "Risk Factors" in documents Elevation Oncology files from time to time with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release, and Elevation Oncology undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Elevation Oncology Investor and Media Contact

Gracie Tong
Senior Director, Investor Relations and Corporate Communications
gtong@elevationoncology.com

 

Selected Financial Information (In thousands, except share and per share data) (unaudited)
		Year ended December 31,						Three months ended December 31,
		2024			2023			2024			2023
Statement of Operations items:
Operating expenses:
Research and development		$	28,597		$	25,434		$	6,647		$	4,691
General and administrative			16,106			14,904			3,995			3,255
Restructuring charges			—			5,107			—			—
Total operating expenses			44,703			45,445			10,642			7,946
Loss from operations			(44,703)			(45,445)			(10,642)			(7,946)
Other income (expense):
Interest income (expense), net			1,203			(229)			215			56
Loss on extinguishment of debt			(942)			—			—			—
Total other income (expense), net			261			(229)			215			56
Loss before income taxes			(44,442)			(45,674)			(10,427)			(7,890)
Income tax expense			43			30			9			9
Net loss		$	(44,485)		$	(45,704)		$	(10,436)		$	(7,899)
Net loss per share, basic and diluted		$	(0.78)		$	(1.25)		$	(0.18)		$	(0.17)
Weighted average common shares outstanding, basic and diluted			57,275,454			36,522,716			59,122,429			46,856,011

 

Selected Financial Information (In thousands, except share and per share data) (unaudited)
		December 31,
Selected Balance Sheet items:		2024			2023
Cash, cash equivalents and marketable securities		$	93,184		$	83,107
Working capital1			90,259			83,819
Total assets			95,626			89,091
Long-term debt, net of discount			31,134			30,137
Total stockholders' equity			60,025			54,809

1.	We define working capital as current assets less current liabilities.

 

 

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SOURCE Elevation Oncology

FAQ

What were the key financial results for Elevation Oncology (ELEV) in Q4 2024?

ELEV reported a net loss of $10.4M, R&D expenses of $6.6M, and ended with $93.2M in cash, cash equivalents and marketable securities.

When will Elevation Oncology (ELEV) report initial data from EO-3021 combination trials?

ELEV expects to report initial data from the combination cohorts in Q4 2025 or Q1 2026.

What are the upcoming milestones for ELEV's EO-3021 program in 2025?

ELEV will report additional safety and efficacy data from the Phase 1 monotherapy trial in Q2 2025, followed by combination cohort data in Q4 2025 or Q1 2026.

How long will ELEV's current cash position last?

The company's cash position of $93.2M is expected to fund operations into 2026.

What were the preclinical results for ELEV's EO-3021 combinations?

EO-3021 showed 88.2% tumor growth inhibition with DC101 and 79.9% with PD-1 inhibitor, with 92% complete response rate in the PD-1 combination.