iTeos Therapeutics, Inc. (ITOS): Business Model Canvas [Dec-2025 Updated]

You're looking at a biotech that just hit a major inflection point, so we need to analyze their pivot from drug developer to asset liquidator, defintely a tough spot. Following the May 2025 termination of the GSK collaboration, iTeos Therapeutics, Inc. (ITOS) has fundamentally shifted its Business Model Canvas from discovery to disposition, now focusing on marketing pipeline assets like EOS-984 and EOS-215. Honestly, the core value proposition is now about offering de-risked oncology assets to big pharma while managing down operations, all while preserving that significant Q1 2025 cash balance of $624.3 million; let's break down the transactional mechanics of this wind-down below.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Key Partnerships

The Key Partnerships block for iTeos Therapeutics, Inc. underwent a drastic re-evaluation following the termination of its major collaboration and the subsequent decision to cease core operations in May 2025. The focus shifted from co-development to asset monetization, fundamentally altering the nature of its external relationships.

GSK Collaboration for belrestotug Terminated in May 2025

The partnership with GlaxoSmithKline (GSK) concerning the belrestotug program officially ended. GSK provided written notice of termination on May 13, 2025, following interim results from the GALAXIES Lung-201 study, which did not meet progression-free survival improvement criteria. This collaboration, originally established in June 2021, was potentially valued at up to $2 billion and included a $625 million upfront payment to iTeos Therapeutics. The termination agreement, dated July 18, 2025, included a $32.0 million settlement payable to iTeos Therapeutics. The financial impact is clear: license and collaboration revenue for the six months ended June 30, 2025, was $0, compared to $35.0 million in the first half of 2024. The cessation of this program was a primary driver for the strategic pivot.

Investment Banks and Legal Advisors for Strategic Review and Asset Sales

The decision to explore strategic alternatives, announced on May 28, 2025, necessitated engaging external financial and legal expertise to manage the wind-down and asset sales process. The company was reportedly assisted in this strategic review by financial advisory firm TD Cowen. This engagement is critical for maximizing shareholder value from the remaining intellectual property, including EOS-984 and EOS-215. The company's financial position at the time of the announcement provided a runway for these activities, with a cash balance of $624.3 million as of March 2025, which management expected to last through 2027.

Here are the key financial figures underpinning the need for this advisory support:

Contract Research Organizations (CROs) for Managing Clinical Trial Wind-Down

The wind-down of clinical and operational activities, expected to be substantially complete by the third quarter of 2025, requires managing existing contracts, including those with CROs overseeing ongoing trials for assets like EOS-215. The anticipated wind-down costs of approximately $11.1 million cover these activities, separate from the $32.0 million settlement with GSK. The reliance on CROs shifts from active trial management to orderly cessation and data archiving. The company's Q1 2025 net loss was $34.6 million, illustrating the ongoing burn rate that the wind-down aims to mitigate.

Potential New Partners for Licensing or Acquiring Remaining Assets (EOS-984, EOS-215)

The primary focus of the post-May 2025 partnership strategy is the divestiture of remaining pipeline assets. The company is actively exploring sales for:

• EOS-984: A preclinical ENT1 inhibitor, with Phase 1 data anticipated in the second half of 2025 (2H25).
• EOS-215: An anti-TREM2 antibody, which had an Investigative New Drug (IND) submission anticipated in the first quarter of 2025 (1Q25).
• A preclinical obesity program targeting ENT1.

The market reaction to the sale announcement on May 28, 2025, saw the stock surge 21% premarket, reflecting investor belief in the value of these assets, with analysts projecting a median price target of $12.50, a 42% premium to May 2025 lows. The potential proceeds from these sales are estimated to add $2 to $3.50 per share to the base case valuation of $12/share (based on post-wind-down cash). You're looking at a company actively seeking a buyer for its core remaining value drivers.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Key Activities

You're looking at the final phase of a clinical-stage biotech, where the Key Activities shift entirely from discovery and development to capital return. For iTeos Therapeutics, Inc. as of late 2025, this means executing a controlled shutdown following the August 29, 2025 acquisition by Concentra Biosciences, LLC.

The core activities revolve around monetizing what's left and efficiently managing the remaining funds. The company's immediate focus, post-announcement on May 28, 2025, was to maximize shareholder value through disposition rather than continued, costly clinical operations.

Here's a quick look at the assets central to this liquidation strategy and the financial context surrounding the wind-down:

The Key Activities driving the Business Model Canvas in this period are highly focused on transactional execution:

• Executing the strategic review and winding down clinical operations.
• Marketing and negotiating the sale or out-licensing of pipeline assets.
• Preserving capital and managing the remaining cash balance.
• Maintaining and protecting the core Intellectual Property (IP) portfolio.

Executing the strategic review and winding down clinical operations.

This activity involved the formal cessation of ongoing research and development efforts. The decision to wind down operations was announced on May 28, 2025, following a comprehensive review. This meant discontinuing programs like the inupadenant program and ceasing clinical and operational activities across the board. The company's Q1 2025 Net Loss was reported at $34.6 million, a figure that will no longer be the primary focus as development spend ceases.

Marketing and negotiating the sale or out-licensing of pipeline assets.

The primary focus shifted to monetizing the remaining pipeline. The assets actively being marketed for sale or out-licensing included EOS-984, EOS-215, and a preclinical obesity program targeting ENT1. The success of these negotiations directly impacts the value realized by Contingent Value Right (CVR) holders, as 80% of the proceeds from any product candidate dispositions within six months post-closing are allocated to them.

Preserving capital and managing the remaining cash balance.

The activity here is strictly focused on capital stewardship until distribution. As of March 31, 2025, the cash and investments balance stood at $624.3 million, which the company expected would provide a runway through 2027 under the old operating model. Post-acquisition, the focus is on ensuring the net cash exceeding $475 million at closing is preserved for the CVR payout. General and Administrative (G&A) expenses were already reduced to $11.0 million in Q1 2025, down from $12.7 million year-over-year, reflecting early cost-cutting efforts preceding the full wind-down.

Maintaining and protecting the core Intellectual Property (IP) portfolio.

Protecting the value of the IP assets being sold is paramount. This involves ensuring the legal status of patents and trade secrets related to candidates like EOS-984 and EOS-215 remains unencumbered for transfer to a new owner. While the lead asset, belrestotug, was developed in collaboration with GSK, which holds exclusive rights outside the U.S., the remaining core IP portfolio must be maintained to support the asset sales negotiations. The company's former R&D expenses, which were $29.0 million in Q1 2025, are now being drastically reduced to cover only essential IP maintenance costs.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Key Resources

The Key Resources for iTeos Therapeutics, Inc. as of late 2025 are centered on its remaining financial reserves and its pipeline assets, which were being managed through a wind-down and acquisition process.

The financial foundation, though shrinking due to operational burn, was a primary resource supporting the wind-down activities and asset sale exploration.

The company's intellectual property portfolio represented the core value being leveraged for shareholder return through potential sales.

• Intellectual Property (IP) covering novel immuno-oncology targets, including the mechanism for the ENT1 inhibitor program.
• IP related to the potential best-in-class anti-TREM2 antibody candidate.
• The preclinical obesity program IP, also targeting ENT1 inhibition in metabolic disorders.

The scientific capability, built over time, was critical for preparing the remaining assets for potential acquisition.

• Scientific expertise focused on tumor immunology and drug discovery, particularly in targeting resistance mechanisms within the tumor microenvironment.
• The team was responsible for the development of the lead candidate belrestotug, an optimized high-affinity, potent anti-TIGIT mAb.

The remaining clinical data packages were essential for establishing the value of the pipeline assets being explored for sale.

• Clinical data package for EOS-984, a potential first-in-class small molecule ENT1 inhibitor, with topline data assessing monotherapy and combination use anticipated in 2H25.
• Clinical data package for EOS-215, the anti-TREM2 antibody, following an Investigative New Drug (IND) application anticipated in 1Q25.
• The company was exploring the potential sale of the intellectual property and assets including EOS-984 and EOS-215 following the decision to wind down operations in May 2025.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Value Propositions

You're looking at the value proposition of iTeos Therapeutics, Inc. (ITOS) in late 2025, and honestly, the story has pivoted sharply from pipeline development to asset monetization following the May 2025 announcement to wind down operations.

Opportunity for large pharma to acquire de-risked, first-in-class assets.

The primary value proposition now centers on acquiring novel, non-TIGIT assets that have already cleared early-stage hurdles. Specifically, EOS-984, a small-molecule ENT1 inhibitor, is positioned as a first-in-class molecule targeting nucleotide metabolism in tumors, which could enhance checkpoint inhibitor efficacy. This asset, along with EOS-215 (anti-TREM2 antibody) and a preclinical obesity program, represents a chance for a large acquirer to gain differentiated science without the multi-year, high-burn-rate development risk iTeos carried.

Access to a strong balance sheet with a cash runway through 2027 (under previous plan).

While the company's operational plan has changed, the historical financial strength is part of the asset's attractiveness. As of March 31, 2025, iTeos Therapeutics reported $624.3 million in cash and investments, which the company previously stated was sufficient to fund operations through 2027, including potential Phase 3 trials for belrestotug. This substantial cash reserve, even after the Q2 2025 net loss of $(78.7) million, provided a solid financial foundation underpinning the eventual sale process.

Novel mechanisms of action targeting the tumor microenvironment.

iTeos Therapeutics built its value on targeting immunosuppressive pathways beyond the crowded PD-1/L1 space. The pipeline offered several distinct mechanisms, which is what sophisticated buyers look for when seeking pipeline diversification. Here's a quick look at the key assets being offered for sale:

The lead program, belrestotug, was awaiting rigorous assessment, with topline interim data from GALAXIES Lung-201 (involving over 240 patients) anticipated in Q2 2025 to determine advancement versus PD-1 monotherapy.

Near-term value realization for shareholders via asset sales/liquidation.

The most concrete value realization event is the July 2025 agreement for Concentra Biosciences to acquire iTeos Therapeutics for $10.047 in cash per share, plus a Contingent Value Right. This transaction provided an immediate, quantifiable return following the strategic review initiated in May 2025. The decision to cease operations and focus on maximizing shareholder value through asset sales, rather than continuing the high-cost clinical development path-evidenced by the Q2 2025 R&D expense of $57.3 million for the quarter-crystallized the final value proposition for the remaining shareholders.

Finance: finalize the CVR valuation impact analysis by next Tuesday.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Customer Relationships

The relationships for iTeos Therapeutics, Inc. (ITOS) in late 2025 were defined by the transition from clinical development to maximizing shareholder value via asset disposition and ultimately, acquisition.

Transactional, high-touch engagement with potential asset acquirers

The primary transactional focus shifted from potential licensing/collaboration deals to a full sale of the company or its assets following the May 28, 2025 announcement to wind down operations. This culminated in a definitive merger agreement with Concentra Biosciences, LLC, announced on July 21, 2025.

The final terms of the acquisition represented the ultimate transaction with the market/acquirer:

Prior to the Concentra deal, the company was exploring asset sales for intellectual properties including EOS-984, EOS-215, and a preclinical obesity program targeting ENT1.

Direct communication with shareholders regarding the strategic review process

Communication with shareholders was centered on the strategic review, the wind-down decision, and the finalization of the acquisition terms. The company's financial position was a key point of reassurance during this process.

• Cash and Investment Balance as of March 31, 2025: $624.3 million.
• Projected Cash Runway (Pre-Acquisition): Through 2027.
• Analyst Consensus Rating (as of August 2025 data): Hold (based on 6 analysts).
• 12-Month Stock Price Target (as of August 2025 data): $10.4.

The final consideration delivered to common stockholders was $10.047 cash plus one non-transferable CVR per share.

Managing relationships with former clinical trial sites and investigators

With the intention to cease core operations announced on May 28, 2025, the relationship management shifted from active trial execution to close-out and data transfer for ongoing studies. The scale of the relationships is reflected in the patient numbers from the trials that were being managed or concluded.

Key clinical trial data sets relevant to investigator relationships included:

• GALAXIES Lung-201 Interim Data (Q2 2025): Included safety, ORR, and ctDNA data from over 240 patients.
• GALAXIES H&N-202 Interim Data (2025): Included safety and ORR from over 150 patients.
• TIG-006 Study (First Portion Data in 2025): Included safety, ORR, and PFS from a total of 40 patients.

The company had 173 employees as of August 2025, a group whose relationships with sites would have been managed during the wind-down.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Channels

You're looking at the channels iTeos Therapeutics, Inc. (ITOS) used to connect its value proposition-its pipeline assets-to its customer segments, which, in late 2025, shifted from patients/physicians to acquirers. The primary channel strategy pivoted in May 2025 to asset realization following the decision to wind down operations.

Direct outreach to potential pharmaceutical and biotech buyers centered on the intellectual property portfolio made available during the strategic review announced in May 2025. This outreach targeted specific therapeutic areas where iTeos Therapeutics had differentiated science, even after the termination of the collaboration with GlaxoSmithKline Plc for belrestotug.

• Assets explicitly marketed included EOS-984, an ENT1 inhibitor targeting nucleotide metabolism.
• EOS-215, an anti-TREM2 antibody aimed at tumor-associated macrophages, was another key offering.
• A preclinical obesity program targeting ENT1 was presented as an avenue into metabolic disorders.
• Potential buyers identified included Big Pharma players like GSK, despite the prior collaboration termination, and specialized biotechs focused on immuno-oncology or metabolic therapies.

The market signaled interest, with the stock price surging 22% premarket upon the announcement of the asset sale process in May 2025.

Investment banking channels facilitating the asset sale process were critical in structuring the ultimate exit. The strategic review process culminated in a definitive Agreement and Plan of Merger, announced on July 18, 2025, with Concentra Biosciences, LLC. This M&A channel replaced the traditional drug development and commercialization channel.

The transaction terms, executed through an investment banking process, defined the final value realization channel for shareholders and option holders.

The merger closed in August 2025, converting all outstanding common stock into the cash and Contingent Value Right (CVR) consideration.

Investor relations and SEC filings for shareholder communication served as the formal channel for disclosing the shift in strategy and the final transaction. The winding down and asset sale exploration were communicated via press release, which is subsequently filed on SEC Form 8-K.

The financial health underpinning this process was transparently communicated in the Q1 2025 financial results, filed on Form 10-Q, showing the capital available to support the wind-down and negotiations.

• The Form 8-K filed on July 18, 2025, detailed the entry into the Merger Agreement.
• Insider Form 4 filings in August 2025 documented the cancellation of stock options, converting them into the merger consideration of $10.047 cash plus one CVR per underlying share for in-the-money options.
• The company's market capitalization was reported around $448.7 million as of October 2025, reflecting the post-merger valuation context.

The CVR itself acts as a final, delayed channel for value distribution to former shareholders based on the success of asset dispositions within six months post-closing.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Customer Segments

You're looking at the customer segments for iTeos Therapeutics, Inc. following its acquisition, which means the focus has shifted from drug development to asset realization. The key groups are those who buy the assets and those who are cashing out their ownership stake. Here's the quick math on who the remaining stakeholders are as of late 2025.

Large pharmaceutical and biotech companies seeking to acquire oncology assets

This segment is defined by entities interested in acquiring the remaining intellectual property (IP) and clinical assets, such as the lead candidate belrestotug or the preclinical programs EOS-984 and EOS-215. The primary historical reference point for this segment's valuation appetite is the prior collaboration with a major partner.

• The potential total deal value for the belrestotug program with GSK was up to $1.45 billion, mostly contingent milestones.
• The company's acquisition by Concentra Biosciences, LLC in August 2025, at a price of $10.047 per share in cash, sets the immediate benchmark for asset valuation.
• The company had a strong cash position of $624.3 million as of March 31, 2025, which was a key component of the final sale consideration.

The assets being monetized stem from clinical programs that involved significant patient populations, which are now part of the asset package for disposition.

Existing shareholders seeking near-term value from asset liquidation

This group's interest is entirely focused on the realization of the Offer Consideration from the merger that closed on August 29, 2025. Their primary action was tendering shares to secure immediate cash plus the contingent right.

The structure of the payout directly addresses their need for near-term value, which is a common driver for institutional holders in clinical-stage biotechs facing pivotal data readouts.

• The cash component paid was $10.047 per share.
• The minimum tender condition was met by 32,226,407 shares, which was approximately 72.17% of outstanding shares.
• Before the acquisition, institutional ownership was a substantial 90.28% of shares as of May 2025.

The Contingent Value Right (CVR) is the mechanism for realizing residual value, tying shareholder payout directly to the success of asset liquidation over the following six months.

The CVR terms dictate the following payout structure from the remaining value pool:

• 100% of closing net cash in excess of $475 million.
• 80% of net proceeds from any disposition of certain product candidates within six months.

The company's cash position as of March 31, 2025, was $624.3 million, which is defintely relevant to the CVR calculation threshold of $475 million.

Former clinical trial investigators and patients (indirectly)

While not direct revenue customers, investigators and patients are critical stakeholders whose involvement must be managed during the transition to a wholly-owned subsidiary focused on wind-down. Their continued cooperation is necessary for the value of the assets being sold to remain intact.

• The company reported a net loss of $34.6 million in Q1 2025, illustrating the high cost of running these trials.
• The cash runway was projected through 2027 based on the Q1 2025 cash balance, covering planned trial continuation before the sale.

Finance: draft 13-week cash view by Friday.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Cost Structure

The Cost Structure for iTeos Therapeutics, Inc. shifted significantly in 2025 following the termination of the GSK collaboration and the subsequent decision to wind down operations and explore asset sales. The focus moved from sustained R&D investment to managing exit-related liabilities.

High fixed costs related to winding down operations and severance became a primary cost driver. This was evidenced by the reported restructuring costs of $16.3 million recognized in the second quarter of 2025. These costs covered severance, contract terminations, lease exits, and workforce reductions, following the announcement on May 28, 2025, to cease clinical and operational activities.

Legal and advisory fees are a necessary component of the strategic review and asset sale process, which includes exploring sales of intellectual property like EOS-984 and EOS-215. The company engaged TD Cowen to assist in maximizing shareholder value through this strategic review.

Reduced Research & Development (R&D) expenses reflect the discontinuation of development programs, most notably the lead belrestotug program. For the first quarter ended March 31, 2025, R&D expenses were $29.0 million, down from $34.5 million in the same quarter of 2024. Year-to-date (YTD) through June 30, 2025, R&D expense totaled $86.314 million.

General and Administrative (G&A) expenses for corporate overhead also saw a decrease as the company streamlined activities ahead of the wind-down. G&A expenses for Q1 2025 were $11.0 million, compared to $12.7 million in Q1 2024. For the second quarter of 2025, G&A was $10.2 million, and YTD G&A through June 30, 2025, was $21.2 million.

Here's a quick look at the key operating expenses during this transition period:

The overall operating expenses for Q1 2025 totaled $40.0 million, a reduction from $47.2 million in Q1 2024. The company's focus is on managing these wind-down costs while exploring asset sales, which may generate proceeds to offset these expenditures.

The cost structure is characterized by these non-recurring wind-down charges layered on top of the remaining operational overhead:

• Restructuring costs of $16.3 million in Q2 2025.
• Legal and advisory fees for strategic review/asset sales.
• Q1 2025 R&D spend at $29.0 million.
• Q1 2025 G&A spend at $11.0 million.
• Cessation of costs related to the discontinued inupadenant and belrestotug programs.

Finance: draft 13-week cash view by Friday.

iTeos Therapeutics, Inc. (ITOS) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for iTeos Therapeutics, Inc. as of late 2025, and honestly, the picture has changed dramatically following the termination of the GSK collaboration and the announced intent to wind down operations. The focus has shifted entirely from product development revenue to asset realization and cash preservation.

Upfront Payments and Milestones from Future Out-licensing or Sale of Remaining Assets

The primary forward-looking revenue stream is no longer tied to clinical progression but to the orderly disposition of remaining intellectual property and assets. Following the decision to cease clinical and operational activities, the board is focused on leveraging the existing cash balance to deliver near-term value to shareholders through asset sales. The potential value here is contingent on successful transactions for the remaining pipeline candidates.

• Exploring potential asset sales including the ENT1 inhibitor EOS-984.
• Exploring potential asset sales including the anti-TREM2 antibody EOS-215.
• Exploring potential asset sales including a preclinical obesity programme targeting ENT1.

The definitive merger agreement with Concentra Biosciences, signed in July 2025, directly impacts this stream via a Contingent Value Right (CVR). This CVR entitles shareholders to 80% of net proceeds from any asset sales or licenses executed within six months post-closing of the merger. Furthermore, shareholders receive 100% of the closing net cash if that amount exceeds $475 million.

Potential Liquidation Value from the Remaining Cash and Investments

This is the most concrete and immediate component of the current revenue structure, representing the company's primary asset base available for distribution or winding-down expenses. As of the end of the second quarter of 2025, the balance sheet held substantial liquid assets, though the operating cash burn rate remains a factor to consider.

Here's the quick math on the cash and investment position as of June 30, 2025, which is the latest comprehensive data available:

The total assets reported were $623.083 million, against total liabilities of $129.282 million as of that date. What this estimate hides is the exact timing and quantum of the required $32.0 million settlement payment due to GSK under the Mutual Termination Agreement.

No Current Product Sales Revenue (Clinical-Stage Company)

As a clinical-stage biopharmaceutical company, iTeos Therapeutics, Inc. has no approved products on the market. Therefore, there is no recurring revenue from product sales, royalties, or commercialization activities. This lack of operating revenue is why the focus has pivoted to asset realization.

Prior Collaboration Revenue (e.g., the Upfront Payment from GSK, now ceased)

The most significant historical revenue source was the collaboration with GlaxoSmithKline (GSK) centered on the anti-TIGIT antibody, belrestotug. This stream has now ceased entirely. For the first six months of 2025, license and collaboration revenue was reported as $0. This compares starkly to the $35.0 million recognized in revenue during the first half of 2024, which included a milestone payment from the GSK partnership.

To be fair, the original 2021 partnership with GSK included a substantial upfront payment, but that cash inflow is historical and not part of the current or near-term revenue stream, which is now defined by the wind-down and asset sale process. Finance: draft the final cash distribution plan based on the Concentra merger closing date by November 30, 2025.