iTeos rises as it looks to conserve cash after cancer drug setback

Shares of cancer drug developer iTeos Therapeutics ITOS.O rise 13.6% to $7.86

ITOS and partner GSK GSK.L say they have terminated development of their experimental lung cancer therapy after its failure to significantly improve progression-free survival in two mid-stage trials

ITOS says it has initiated a review of strategic alternatives to conserve cash

"As most investors have already thrown in the towel on TIGIT, the decision to terminate the partnership is viewed as a relief to preserve resources for its Ph 1-stage pipeline" - J.P.Morgan analyst Brian Cheng

The discontinued drug belongs to a class of treatments focused on the TIGIT receptor that has fallen out of favor in recent years after a spate of clinical setbacks due to low efficacy

As of last close, ITOS up 4.4% YTD