Restructuring Charges

3 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

Restructuring Charges

6. Restructuring Charges

In March 2025, the Company announced that it elected to discontinue development of EO-3021, a Claudin 18.2 ADC. As part of the Company’s restructuring, the Company implemented a workforce reduction of approximately 70%. The workforce reduction was substantially completed in March 2025 and is expected to be fully completed in May 2025.

The Company incurred total restructuring charges of approximately $3.4 million, which included $2.2 million of one-time termination and contractual termination benefits for severance, healthcare and related benefits, and $1.2 million of asset write-offs. The one-time termination benefits were recorded in March 2025 under the provisions of Accounting Standards Codification (“ASC”) 420, Exit or Disposal Cost Obligation, as this is the period the termination plan was both approved and communicated to the impacted employees. The contractual termination benefits were recorded in March 2025 under the provisions of ASC 712, Compensation-Nonretirement Postemployment Benefits, which is the period in which the contractual postemployment benefits became probable of recognition.

The following table summarizes the components of the Company’s restructuring activity recorded in accrued expenses in the accompanying condensed consolidated balance sheet (in thousands):

	Expense incurred during the three months ended March 31, 2025		Amounts paid during the three months ended March 31, 2025		Amounts unpaid at March 31, 2025
Employee severance, benefits and related costs	$	2,165	$	—	$	2,165
	$	2,165	$	—	$	2,165