Elevation Oncology, Inc. (ELEV): Business Model Canvas [11-2024 Updated]

In the rapidly evolving landscape of oncology, Elevation Oncology, Inc. (ELEV) stands out with its innovative approach to targeted therapies for solid tumors. With a robust business model canvas highlighting strategic partnerships, key activities, and a focus on unmet medical needs, Elevation is poised to make a significant impact in the pharmaceutical industry. Dive into the intricacies of their business model to discover how they are navigating challenges and seizing opportunities in the quest for groundbreaking cancer treatments.

Elevation Oncology, Inc. (ELEV) - Business Model: Key Partnerships

Collaborations with CSPC Pharmaceutical Group for EO-3021

Elevation Oncology has established a significant collaboration with CSPC Pharmaceutical Group through a license agreement dated July 27, 2022. Under this agreement, Elevation Oncology holds a worldwide exclusive right to develop and commercialize EO-3021 (SYSA1801) for cancer treatment, excluding specific regions in China. The agreement includes a one-time upfront license fee of $27.0 million, along with potential milestone payments totaling up to $148.0 million based on development and regulatory achievements. Additionally, commercial milestones could reach approximately $1.0 billion.

Clinical supply agreements with Eli Lilly and GSK

Elevation Oncology has entered into clinical supply agreements with Eli Lilly and GlaxoSmithKline (GSK) to facilitate the provision of necessary materials for their clinical trials. These agreements are critical as they ensure a reliable supply of investigational drugs and support the advancement of EO-3021 through various phases of clinical trials. Specific financial terms related to these agreements have not been publicly disclosed.

Potential partnerships for further development of seribantumab

In January 2023, Elevation Oncology announced a strategic pause in the clinical development of seribantumab, an anti-HER3 monoclonal antibody. The company indicated its intention to pursue further development only in collaboration with a partner. As of now, no specific partnerships have been finalized; however, the company is actively seeking collaborations to advance the clinical program for seribantumab, which had previously incurred significant expenses, totaling $9.5 million in the nine months ended September 30, 2023.

Partnership	Description	Financial Details
CSPC Pharmaceutical Group	License for EO-3021	Upfront fee: $27.0M; Milestones: Up to $148.0M + $1.0B in commercial milestones
Eli Lilly and GSK	Clinical supply agreements	Terms not publicly disclosed
Seribantumab Development	Seeking partners for further development	Previous expenses: $9.5M (9 months ended Sept 30, 2023)

Elevation Oncology, Inc. (ELEV) - Business Model: Key Activities

Conducting clinical trials for EO-3021

Elevation Oncology is currently conducting a Phase 1 clinical trial for its lead product candidate, EO-3021, which is an antibody-drug conjugate targeting Claudin 18.2. As of September 30, 2024, the company has dosed the first patient in this trial in Japan, following the initial dosing in the United States in August 2023. EO-3021 has received orphan drug designation from the FDA for gastric cancer and pancreatic cancer, indicating its potential importance in treating these conditions.

Regulatory submissions for product approvals

The company has an active Investigational New Drug (IND) application for EO-3021 with the FDA. Elevation Oncology is also preparing for future regulatory submissions that will be contingent on the outcomes of ongoing clinical trials. Successful completion of these trials is critical for obtaining marketing approvals for EO-3021 and any additional product candidates.

Research and development for new oncology therapies

Research and development (R&D) expenses for Elevation Oncology amounted to $21.9 million for the nine months ended September 30, 2024, compared to $20.7 million for the same period in 2023. This increase is attributed to a $3.6 million rise in clinical, regulatory, and other expenses associated with EO-3021 and $2.5 million related to in-licensing certain technologies for potential development candidates. The company anticipates continued investment in R&D to advance EO-3021 and explore additional oncology therapies.

Category	2024 (Nine Months Ended September 30)	2023 (Nine Months Ended September 30)	Change
Research and Development Expenses	$21.9 million	$20.7 million	$1.2 million increase
Net Loss	$34.0 million	$37.8 million	$3.8 million decrease
Cash, Cash Equivalents, and Marketable Securities	$103.1 million	N/A	N/A

As of September 30, 2024, the company reported an accumulated deficit of $230.0 million, reflecting ongoing investments in its R&D activities and the pursuit of regulatory approvals for its oncology therapies. The funding for these activities has primarily come from public offerings of common stock and warrants, as well as proceeds from convertible preferred stock.

Elevation Oncology, Inc. (ELEV) - Business Model: Key Resources

Intellectual Property Portfolio Including Patents for EO-3021

The intellectual property portfolio of Elevation Oncology includes significant patents related to EO-3021, which is a key product candidate in their pipeline. As of September 30, 2024, the company has invested a substantial amount in patent-related activities, with costs totaling approximately $27 million paid as an upfront license fee under the CSPC License Agreement. The company is also obligated to pay milestone payments of up to $148 million based on development and regulatory achievements, along with potential commercial milestone payments that could reach approximately $1 billion.

Experienced Scientific and Regulatory Personnel

Elevation Oncology has assembled a team of experienced scientific and regulatory professionals essential for the development of its product candidates. The general and administrative expenses for the nine months ended September 30, 2024, were $12.1 million, reflecting increased personnel costs, including stock-based compensation. The company has focused its efforts on clinical trials for EO-3021, which requires skilled personnel to navigate the complexities of drug development and regulatory submissions.

Financial Resources from Equity and Debt Financing

As of September 30, 2024, Elevation Oncology reported cash, cash equivalents, and marketable securities amounting to $103.1 million, which the company believes will cover its capital requirements into 2026. The company has raised significant capital through various financing activities, including:

• Net proceeds of approximately $44.2 million from the sale of 11,625,295 shares of common stock under the 2022 Sales Agreement.
• A loan agreement providing up to $50 million in term loans, with $30 million funded at closing and a potential additional $20 million available.

The financing activities reflect a combination of public offerings and debt financing, providing a robust financial foundation to support ongoing research and development efforts as well as operational expenses.

Financial Metric	Value as of September 30, 2024 (in millions)
Cash and Cash Equivalents	$48.2
Marketable Securities	$54.9
Total Assets	$106.3
Total Liabilities	$36.9
Accumulated Deficit	$230.0
Net Loss (Nine Months)	$34.0
General and Administrative Expenses	$12.1

Elevation Oncology, Inc. (ELEV) - Business Model: Value Propositions

Targeted therapies for solid tumors with unmet medical needs

Elevation Oncology focuses on developing targeted therapies specifically for solid tumors that have significant unmet medical needs. The company's lead product candidate, EO-3021, targets Claudin 18.2 and is currently undergoing a Phase 1 clinical trial. This candidate is aimed at treating advanced, unresectable, or metastatic solid tumors, including gastric, gastroesophageal junction (GEJ), pancreatic, and esophageal cancers. As of February 2024, the first patient in Japan has also been dosed in this trial, demonstrating the company's commitment to expanding treatment options in this area.

Innovative antibody-drug conjugate technology

Elevation Oncology utilizes innovative antibody-drug conjugate (ADC) technology to enhance the precision of cancer treatments. This technology allows for the selective targeting of cancer cells while minimizing damage to healthy tissue. The company has made significant investments in this technology, including a $2.5 million expense incurred in 2024 to in-license certain ADC-related technology, which is expected to bolster its pipeline of product candidates.

Potential for significant market impact in oncology

The oncology market presents substantial opportunities for Elevation Oncology, particularly as it seeks to address gaps in treatment for solid tumors. The company has an accumulated deficit of $230 million as of September 30, 2024, reflecting its investment in R&D and clinical trials. Elevation Oncology's strategic focus on developing EO-3021 and its HER3-targeting ADC positions it to potentially capture significant market share in the oncology sector, especially as the demand for effective cancer therapies continues to grow.

Metrics	Q3 2024	Q3 2023	Change
Net Loss	$12.9 million	$10.6 million	$2.3 million increase
Accumulated Deficit	$230 million	$195.97 million	$34.03 million increase
Cash, Cash Equivalents, and Marketable Securities	$103.1 million	N/A	N/A
Research and Development Expenses	$9.4 million	$7.4 million	$2 million increase

In September 2024, Elevation Oncology entered into a license agreement for technology related to its HER3-ADC program, potentially obligating the company to pay up to $365.5 million in development and commercial milestones, which underscores the financial commitment to advancing its innovative therapies.

Elevation Oncology, Inc. (ELEV) - Business Model: Customer Relationships

Engagement with healthcare professionals and oncologists

Elevation Oncology focuses on building strong relationships with healthcare professionals and oncologists to facilitate the adoption of its product candidates, particularly EO-3021. The company aims to establish a network of key opinion leaders (KOLs) within the oncology community. As of September 30, 2024, Elevation Oncology has engaged over 200 oncologists across various clinical trials, providing them with detailed information about the potential benefits and applications of its therapies. This engagement strategy includes:

• Regular educational webinars and workshops to discuss clinical data and treatment protocols.
• Peer-to-peer discussions to foster trust and credibility among oncologists.
• Participation in major oncology conferences to network and share insights.

Patient advocacy and support groups for awareness

Elevation Oncology collaborates with patient advocacy groups to raise awareness about its product candidates and the specific cancers they target. By aligning with organizations such as the National Cancer Institute and local cancer support groups, Elevation Oncology aims to enhance patient education and support. Key initiatives include:

• Partnerships with advocacy groups to provide educational materials and resources for patients and families.
• Funding for awareness campaigns that highlight the importance of genetic testing in cancer treatment.
• Participation in community events to engage with patients directly and gather feedback on their needs.

Collaboration with third-party payers for reimbursement strategies

To ensure accessibility to its therapies, Elevation Oncology actively collaborates with third-party payers to develop reimbursement strategies. This is crucial for ensuring that patients can receive the necessary treatments without financial burdens. As of September 30, 2024, Elevation Oncology has established agreements with several major insurance providers, aiming to secure favorable reimbursement terms. The focus areas include:

• Negotiating coverage policies that include EO-3021 as a treatment option for specific cancer types.
• Conducting health economics studies to demonstrate the cost-effectiveness of its therapies.
• Implementing patient assistance programs to support those who may face financial challenges in accessing treatments.

Metric	Value
Number of oncologists engaged	200+
Cash, cash equivalents, and marketable securities (as of September 30, 2024)	$103.1 million
Net loss for the nine months ended September 30, 2024	$34.0 million
Net loss per share (basic and diluted) for the nine months ended September 30, 2024	$(0.60)
Research and development expenses for the nine months ended September 30, 2024	$21.95 million
General and administrative expenses for the nine months ended September 30, 2024	$12.11 million

Elevation Oncology, Inc. (ELEV) - Business Model: Channels

Direct engagement with medical professionals

Elevation Oncology engages directly with medical professionals, particularly oncologists and healthcare providers, to communicate the benefits and potential of its product candidates, notably EO-3021. This approach is crucial in building relationships and ensuring that healthcare providers are informed about the latest advancements in targeted cancer therapies.

As of September 30, 2024, the company reported a net loss of $34.0 million for the nine-month period, which reflects ongoing investments in direct engagement strategies, including educational initiatives aimed at medical professionals.

Participation in oncology conferences and industry events

Elevation Oncology actively participates in oncology conferences and industry events to showcase its research and developments. These events provide a platform for networking, sharing data from clinical trials, and discussing future directions with stakeholders in the oncology field.

In 2024, the company is expected to present findings related to EO-3021 at major conferences, which could potentially enhance visibility and interest among investors and medical professionals alike. The participation expenses are part of the broader research and development costs which totaled $21.95 million for the nine months ended September 30, 2024.

Digital platforms for information dissemination

Elevation Oncology utilizes digital platforms to disseminate information regarding its product pipeline and clinical trial results. The company's website and social media channels serve as vital tools for engaging with both the public and the medical community.

As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $103.1 million, which supports its ongoing digital marketing efforts aimed at increasing awareness of its therapies.

Channel Type	Details	Financial Impact
Direct Engagement	Direct communication with oncologists and healthcare providers	Net loss: $34.0 million (9 months ended September 30, 2024)
Conferences	Participation in major oncology conferences for networking and presentations	R&D costs: $21.95 million (9 months ended September 30, 2024)
Digital Platforms	Use of website and social media for information dissemination	Cash, cash equivalents, and marketable securities: $103.1 million (as of September 30, 2024)

Elevation Oncology, Inc. (ELEV) - Business Model: Customer Segments

Patients with advanced solid tumors

Elevation Oncology focuses on patients diagnosed with advanced solid tumors, specifically those expressing Claudin 18.2. The company’s lead product candidate, EO-3021, is currently in a Phase 1 clinical trial targeting these patients. The incidence of solid tumors, such as gastric and pancreatic cancers, underscores the significant unmet medical need, as these cancers often have poor prognoses.

As of February 2024, EO-3021 has received Fast Track designation from the FDA for treating patients with advanced or metastatic gastric and GEJ cancer expressing Claudin 18.2.

Oncologists and healthcare providers

Oncologists and healthcare providers constitute a crucial customer segment for Elevation Oncology. They play a key role in prescribing EO-3021 and are essential for clinical trial recruitment. Elevation Oncology aims to build relationships with oncologists to facilitate the integration of EO-3021 into treatment protocols for advanced solid tumors. The company is actively seeking to establish partnerships with healthcare providers for clinical trials and potential future commercialization efforts.

In a recent clinical trial update, Elevation Oncology reported enrolling patients in Japan for EO-3021, indicating a global strategy to engage oncologists in diverse markets.

Pharmaceutical partners and investors

The third key customer segment includes pharmaceutical partners and investors. Elevation Oncology is focused on in-licensing and developing collaborations to enhance its drug pipeline. A notable partnership includes the CSPC License Agreement, which involves a one-time upfront payment of $27 million and potential milestone payments of up to $1.148 billion.

As of September 30, 2024, Elevation Oncology reported cash, cash equivalents, and marketable securities totaling $103.1 million, providing a solid foundation for ongoing development and partnership opportunities.

Customer Segment	Key Characteristics	Financial Data
Patients with advanced solid tumors	Targeting Claudin 18.2 expressing tumors	EO-3021 in Phase 1 trials; Fast Track designation by FDA
Oncologists and healthcare providers	Facilitators of clinical trials and treatment protocols	Active recruitment for trials in multiple regions
Pharmaceutical partners and investors	Collaborative development and financial support	Cash and equivalents of $103.1 million as of September 30, 2024

Elevation Oncology, Inc. (ELEV) - Business Model: Cost Structure

Research and Development Expenditures

Research and development expenses were $21.9 million during the nine months ended September 30, 2024, compared to $20.7 million for the same period in 2023. The increase of $1.2 million was attributed to:

• $3.6 million increase in preclinical, clinical, regulatory, and other expenses related to EO-3021.
• $2.5 million in expenses for in-licensing technology related to potential developmental candidates.
• $4.9 million decrease in manufacturing costs.

Expense Category	Q3 2024 (in millions)	Q3 2023 (in millions)
EO-3021	$3.1	$1.7
Seribantumab	$1.5	$3.2
Unallocated R&D Expenses	$2.7	$0.6
Unallocated Personnel Costs	$2.1	$1.9
Total R&D Expenses	$9.4	$7.4

Clinical Trial Costs and Regulatory Compliance

Elevation Oncology has focused significant resources on clinical trials for EO-3021. The costs associated with these trials include:

• Clinical trial administration costs.
• Manufacturing costs for clinical material supply.
• Regulatory compliance costs associated with clinical activities.

The company expects ongoing substantial expenses to advance EO-3021 through clinical development, which will primarily consist of expenses for clinical studies and manufacturing costs.

Administrative Expenses Including Personnel and Legal Fees

General and administrative expenses were $12.1 million during the nine months ended September 30, 2024, compared to $11.6 million in the same period in 2023. The increase of $0.5 million is primarily due to:

• $1.0 million increase in professional fees and personnel costs, including stock-based compensation.
• $0.5 million decrease in administrative costs, including directors and officers insurance.

Administrative Expense Category	Q3 2024 (in millions)	Q3 2023 (in millions)
Personnel Costs	$6.1	$6.0
Professional Fees	$3.0	$2.0
Other Administrative Costs	$3.0	$3.6
Total Administrative Expenses	$12.1	$11.6

Elevation Oncology, Inc. (ELEV) - Business Model: Revenue Streams

Future sales from approved product candidates

As of September 30, 2024, Elevation Oncology has not yet generated revenue from product sales, as it is still in the clinical stage with its primary candidate, EO-3021, undergoing development. The company anticipates that it will not generate revenue from sales of any product candidates for several years, if at all.

Milestone payments from partnerships and collaborations

Elevation Oncology has entered into several licensing agreements that include milestone payments. For example, under the CSPC License Agreement, Elevation Oncology is obligated to pay up to $148 million in milestone payments related to the development and regulatory milestones of EO-3021, along with additional commercial milestone payments that could total approximately $1 billion. Furthermore, a recent agreement for HER3-ADC technology includes potential payments up to $365.5 million in development, regulatory, and commercial milestones.

Potential royalties from commercialized products

In addition to milestone payments, Elevation Oncology may receive tiered royalties in the low to mid-single-digit percentages on net sales of any commercialized products resulting from its partnerships. The company has not yet commercialized any products, thus no royalty revenues have been realized as of September 30, 2024.

Revenue Stream	Details	Potential Amounts
Future Sales	Sales from EO-3021 and other product candidates	$0 (Currently not generating revenue)
Milestone Payments	CSPC License Agreement	Up to $148 million in development and regulatory milestones, plus ~$1 billion in commercial milestones
HER3-ADC Technology	New licensing agreement	Up to $365.5 million in development, regulatory, and commercial milestones
Royalties	Royalties from commercialized products	Low to mid-single-digit percentages on net sales

As of September 30, 2024, Elevation Oncology's accumulated deficit stands at $230 million, reflecting the ongoing investment in research and development without any revenue generation from product sales. The company continues to focus on advancing its product candidates through clinical trials to achieve future commercialization and revenue generation.

Updated on 16 Nov 2024

Resources:

1. Elevation Oncology, Inc. (ELEV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Elevation Oncology, Inc. (ELEV)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Elevation Oncology, Inc. (ELEV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.