Shares of Elevation Oncology ELEV plunged more than 40% yesterday after reporting disappointing data from a phase I study on its lead pipeline drug EO-3021 for treating advanced, unresectable or metastatic gastric and gastroesophageal junction (GEJ) cancers.

Data from the study showed that patients who were treated with ELEV’s lead drug showed an objective response rate (ORR) of 22.2% —out of 36 evaluable patients, there was one complete response and seven partial responses.

ELEV’s Stock Performance

Following the disappointing study results, Elevation Oncology decided not to pursue further clinical development of EO-3021. Instead, the company will now shift its focus to solid tumor candidate EO-1022, for which an investigational new drug (IND) filing with the FDA is expected next year. As a result of this decision, ELEV is now without a pipeline candidate in clinical development. These factors were likely responsible for the significant drop in share price.

Year to date, Elevation Oncology’s shares have plummeted nearly 51% against the industry’s 7% growth.

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ELEV to Implement Workforce Reduction to Save Costs

The decision to terminate EO-3021 has led Elevation Oncology to restructure its business operations to reduce costs. In this regard, the company plans to reduce its workforce by 70%. This also includes the company’s Chief Medical Officer, Dr. Valerie Malyvanh Jansen, who will step down at the end of this month.

ELEV believes that these actions will likely extend its cash balance of about $93 million (as of 2024-end) into second-half 2026.

In connection with the restructuring activities, Elevation Oncology expects to incur around $3 million in restructuring costs, most of which will be spent by the end of June.

ELEV’s Zacks Rank

Elevation Oncology currently carries a Zacks Rank #3 (Hold).

Elevation Oncology, Inc. Price

Elevation Oncology, Inc. price | Elevation Oncology, Inc. Quote

Key Picks Among Biotech Stocks

Some better-ranked stocks from the sector are ANI Pharmaceuticals ANIP, CytomX Therapeutics CTMX and 89bio ETNB. While ANIP and CTMX each sport a Zacks Rank #1 (Strong Buy) at present, ETNB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ 2025 earnings per share (EPS) have risen from $5.54 to $6.35. EPS estimates for 2026 have increased from $6.75 to $7.21 during the same period. Year to date, shares of ANIP have risen over 16%.

ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 17.32%.

In the past 60 days, estimates for CytomX Therapeutics’ 2025 EPS have improved from a loss of 31 cents to earnings of 25 cents. During the same timeframe, estimates for loss per share for 2026 have narrowed from 65 cents to 31 cents. Year to date, shares of CytomX have lost about 35%.

CTMX’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 180.70%.

Estimates for 89bio’s loss per share have narrowed from $3.19 to $1.98 for 2025 in the past 60 days. During the same time frame, the loss per share estimates for 2026 have improved from $2.49 to $2.15. ETNB’s shares have risen nearly 12% year to date.

89bio’s earnings missed estimates in three of the trailing four quarters and beat the mark on one occasion, delivering an average negative surprise of 46.18%.

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