iTeos should be up ‘sharply’ on Roche data, says Piper Sandler

Piper Sandler analyst Christopher Raymond expects shares of iTeos Therapeutics “to be up sharply this morning” after its competitor Roche (RHHBY) last night inadvertently disclosed the second interim overall survival analysis from SKYSCRAPER-01, evaluating tiragolumab plus atezolizumab vs atezolizumab alone in first-line PD-L1-high advanced non-small cell lung cancer. At 16 months median follow-up, tiragolumab plus atezolizumab conferred six months of survival benefit versus the control, the analyst tells investors in a research note. Given that the TIGIT space “has been essentially left for dead,” and given Piper’s view that belrestotug is a differentiated, highly active anti-TIGIT, the Roche data bode well for iTeos’ initial data in this setting, which is expected next year, says the firm. It keeps keep an Overweight rating on iTeos Therapeutics with a $34 price target. Piper sees a compelling risk/reward on the stock heading into the readouts next year. iTeos in morning trading is up 50% to $17.59.