iTeos Therapeutics Stock Surges On $2.1B Development Pact For EOS-448 With GSK - ITeos Therapeutics (NASDAQ:ITOS), GSK (NYSE:GSK)

iTeos Therapeutics ITOS and GlaxoSmithKline plc GSK have agreed to co-develop and co-commercialize EOS-448, an anti-TIGIT monoclonal antibody.
Under the terms of the collaboration agreement, iTeos will receive an upfront payment of $625 million.
iTeos will be eligible to receive up to an additional $1.45 billion in milestone payments.
On top of the upfront, GSK says it will share the R&D tab with iTeos for EOS-448. The same goes with commercialization in the U.S., which will be a joint effort with profits split equally, while GSK takes total responsibility outside the U.S. and pledges tiered royalties.
TIGIT is among three known checkpoints on this axis, according to the company. They’ve already been developing a CD96 drug (GSK’608) through a collaboration with 23andMe and brought in a PVRIG therapy (GSK’562) via Surface Oncology Inc SURF.
EOS-448 is currently in phase 1 dose-finding trial in patients with advanced solid tumors.
GSK and iTeos plan to start combination studies of EOS-448 with Jemperli (dostarlimab) in 2022.
Price Action: ITOS shares are up 52.2% at $30.48, and GSK stock is up 0.05% at $40.17 during the premarket session on the last check Monday.