Shares dropped 3.6% following the earnings release, primarily due to cautious outlook and ongoing dose optimization challenges with Varseta-M. Investors responded negatively to the tentative guidance and need for further clinical dose refinement, tempering enthusiasm despite promising early data.

• Market reaction of -3.6% reflects investor concerns about the pace of clinical development and lack of clear near-term approval catalyst.
• Varseta-M showed encouraging Phase I efficacy in late-line colorectal cancer with confirmed ORR between 20-32% and median PFS around 7 months.
• Dose optimization ongoing with 40 patients enrolled in latest cohorts; final dose selection delayed until potentially late 2026 or early 2027.
• Safety remains a key focus with updated management strategies aimed at reducing high-grade diarrhea, Varseta-M’s principal adverse event.
• Combination studies with bevacizumab initiated to support earlier-line use, but data for these will not be available until next year, contributing to cautious outlook.