Undervalued Assets in Distress: Why iTeos Therapeutics' Sale Could Be a Biotech Bargain of 2025

When iTeos Therapeutics announced its strategic review and asset sale process in May 2025, the market reacted with a 22% premarket surge in its stock price—a clear signal that investors see value in the company's distressed assets. Despite the failure of its lead candidate, belrestotug, in lung cancer trials, the shutdown creates a rare opportunity to acquire experimental pipelines at a discount, particularly in the crowded immuno-oncology and obesity therapeutics spaces. For astute investors, the sale process may reveal undervalued entry points into therapies with repurposing potential, even after developmental setbacks.

The Assets Up for Grabs: More Than Meets the Eye

iTeos' portfolio includes three key assets:
1. EOS-984: A first-in-class small-molecule ENT1 inhibitor targeting nucleotide metabolism in tumors. ENT1's role in cancer immunosuppression has sparked interest, as inhibiting it could enhance the efficacy of checkpoint inhibitors. While still in Phase 1 trials, EOS-984's mechanism is distinct from TIGIT or PD-1 pathways, making it a potential complement to existing therapies.
2. EOS-215: An anti-TREM2 antibody targeting tumor-associated macrophages. TREM2's dual role in both neurodegenerative diseases and cancer immunology opens avenues for repurposing—imagine a therapy that could address both glioblastoma and Alzheimer's-related inflammation.
3. Preclinical Obesity Program: Focused on ENT1 inhibition in metabolic disorders, this program taps into a $100 billion obesity drug market. ENT1's link to nucleotide synthesis in adipose tissue suggests potential for weight management, even if its cancer applications falter.

Buyer Motivations: Bargain Hunting in a Crowded Field

The sale process could attract a range of buyers, each with unique incentives:
- Big Pharma Players Like GSK: Despite terminating its belrestotug partnership, GSK remains invested in oncology. Acquiring EOS-984 or EOS-215 could provide a low-risk way to diversify its pipeline without the high R&D costs of internal programs.
- Specialized Biotechs: Companies focused on immuno-oncology or metabolic therapies (e.g., ImmunoGen, Arena Pharmaceuticals) might see these assets as foundational. The preclinical obesity program, for instance, could be a crown jewel for a firm like Arena, which already markets a GLP-1 receptor agonist.
- Strategic Investors: Venture capital firms or therapeutic platforms (e.g., Roche's Genentech) could acquire these assets to bolster their oncology portfolios or explore cross-disease applications.

Near-Term Catalysts: Data Readouts and Strategic Momentum

Investors should watch for two critical milestones in 2025:
1. EOS-984 Phase 1 Data (2H2025): Positive safety and pharmacokinetic results could validate its mechanism and attract buyers willing to fund later-stage trials.
2. EOS-215 IND Submission (1Q2025): Progress here signals the asset's readiness for clinical testing, potentially unlocking value for acquirers.

Even in a shutdown scenario, these data points could reignite investor optimism, driving up bids for the assets. Meanwhile, the $683.9 million cash balance ensures iTeos can negotiate aggressively, prioritizing value over speed.

Risks? Yes. But the Upside Outweighs Them

The obvious risks include regulatory hurdles for repurposed therapies and the possibility of low buyer interest. However, the broader biotech landscape favors these assets:
- TIGIT's Failed Legacy, but Ent1's Rising Star: While TIGIT-targeted drugs are falling out of favor, ENT1's role in immunometabolism is gaining traction. Companies like Merck and Novartis are already exploring nucleotide metabolism in cancer—a trend that could elevate EOS-984's profile.
- Obesity Therapeutics' Gold Rush: With GLP-1 agonists dominating but leaving room for combination therapies, an ENT1 inhibitor could carve a niche in metabolic disease treatment.

Conclusion: Act Now Before the Bargain Disappears

The iTeos sale process presents a rare chance to access experimental therapies at a discount, especially as the market digests its clinical setbacks. For investors with a long-term horizon and appetite for innovation, these assets could represent undervalued opportunities to capitalize on emerging therapeutic trends. With data readouts and strategic negotiations imminent, the window to secure these assets at fire-sale prices may close quickly.

In a sector where hope often outweighs reality, iTeos' assets offer a tangible path to value creation. This is not just about buying the dip—it's about positioning for a future where repurposed science and niche therapies redefine the biotech landscape. The question isn't whether to act, but how quickly you can act before others do.