Here's Why Summit Therapeutics Stock Soared 15% on Friday
Both investment firms remain optimistic about Summit Therapeutics' lead pipeline drug, ivonescimab. This drug was developed in collaboration with China-based Akeso, which is also its original developer. Summit in-licensed the right to develop and market the drug in 2022 across several territories, including the United States and Europe.
Cantor reportedly reiterated its Overweight rating on SMMT after an SEC filing revealed that the company's co-chief executive officer (co-CEO), Bob Duggan, exercised warrants to acquire nearly 4 million shares of the company. This transaction was executed about four years before the warrants expired at a strike price of $1.58 each. The analyst pointed out that this indicated a bullish signal for the stock.
Another regulatory filing also revealed that the company's other co-CEO, Zanganeh Mahkam, procured a similar number of SMMT shares after exercising her warrants roughly four years in advance.
The analysts at Truist also maintained their 'Buy' rating on Summit and a price target of $35 per share.
Year to date, shares of Summit have surged 30% against the industry's 10% decline.
Image Source: Zacks Investment Research
The growing optimism around SMMT stock stems from the recently reported results from the HARMONi-2 study, whichevaluated ivonescimab against Merck's MRK blockbuster oncology drug Keytruda in patients with locally advanced or metastatic NSCLC whose tumors have positive PD-L1 expression.
Last year in May, Summit reported that the drug met its primary endpoint of progression-free survival (PFS), delivering statistically significant and clinically meaningful benefits. Updated results released in September further revealed that ivonescimab cut the risk of disease progression or death by nearly half compared to Keytruda. A clinically meaningful benefit of the drug was also seen across multiple clinical subgroups, including those with PD-L1 low and high expression, squamous and non-squamous histologies, and other high-risk patients.
Based on the HARMONi-2 study results, we believe that ivonescimab could replace Keytruda as the next standard of care across multiple NSCLC settings. Unlike the Merck drug, which targets the PD-1 protein, the Summit drug is a first-in-class bispecific antibody that targets two proteins, namely PD-1 and VEGF. We believe this dual mechanism differentiates ivonescimab from currently available therapies for solid tumors as there is a potentially higher expression of both these proteins in tumor tissue compared to the normal tissues in the body.
Analysts at Truist are optimistic about the overall survival (OS) data from the HARMONI-2 study, expected later this year. OS is considered to be the 'gold standard' for measuring the clinical benefits of a cancer drug.
Currently, ivonescimab is only approved in China to treat patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who have progressed after treatment with an EGFR-TKI. This approval, received last year in May, is based on data from the late-stage HARMONi-A study, which showed that treatment with the drug achieved the primary endpoint of PFS when compared to placebo.
Summit is currently conducting two late-stage studies on the drug in separate NSCLC settings, with data from one study expected in mid-2025. SMMT is also likely to start a third-late study evaluating the drug in a separate NSCLC setting later this year.
Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has been one of the lucrative areas in the treatment of cancer of late. Companies like BioNTech BNTX and Instil Bio TIL are also developing their respective PD-1/VEGF-targeting antibody candidates, namely BNT327 and AXN-2510.
Despite the competition, we believe Summit enjoys the advantage of being ahead in clinical development over the BioNTech and Instil Bio therapies. The BNTX and TIL candidates are still at least a couple of years away from reaching the same clinical development position as SMMT.
In November, Merck signed a deal with China-based LaNova Medicines for the latter's LM-299, which is also based on the same mechanism as ivonescimab. Merck intends to advance the drug's clinical development 'with speed and rigor for patients in need.'
Summit Therapeutics PLC price | Summit Therapeutics PLC Quote
Summit currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Summit Therapeutics PLC (SMMT) : Free Stock Analysis Report
Instil Bio, Inc. (TIL) : Free Stock Analysis Report
BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Applied Materials Warns Uncertainty Is Slowing Its Business, Especially in China
Key Takeaways Applied Materials said macroeconomic uncertainty is hurting its business, especially in China. The maker of equipment for semiconductors gave current-quarter guidance that was short of forecasts. Applied Materials beat third-quarter earnings and revenue estimates as sales at all three of its segments beat estimates. Shares of Applied Materials (AMAT) sank 13% in premarket trading Friday, a day after the semiconductor equipment manufacturer gave weaker-than-expected guidance as global economic and tariff worries impact its business, especially in China. The company sees current-quarter adjusted earnings per share (EPS) between $1.91 and $2.31, and revenue between $6.20 billion and $7.20 billion. Analysts surveyed by Visible Alpha were looking for $2.37 and $7.30 billion, respectively. CEO Gary Dickerson said Applied Materials was "currently operating in a dynamic macroeconomic and policy environment, which is creating increased uncertainty and lower visibility in the near term, including for our China business." CFO Brice Hill added that the company anticipates lower revenue "driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing." Q3 Results Top Analysts' Estimates The warning came as the company reported strong third-quarter results. Adjusted EPS came in at $2.48, with revenue rising 8% year-over-year to $7.30 billion. Both were ahead of Visible Alpha consensus estimates. Sales at all three Applied Materials units—Semiconductor Systems ($5.43 billion), Applied Global Services ($1.60 billion), and Display ($263 million)—beat forecasts. Entering Friday's session, Applied Materials shares were more than 15% higher year-to-date. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
NBC News
7 minutes ago
- NBC News
Warren Buffett's Berkshire Hathaway reveals new stake in beleaguered insurer UnitedHealth
Warren Buffett's Berkshire Hathaway revealed a new stake in troubled insurer UnitedHealth last quarter, according to a regulatory filing, a surprising buy because of the company's current reputation, but perhaps not considering his history of bargain investing. The Omaha-based conglomerate bought more than 5 million shares in the health care firm for a stake worth about $1.6 billion at the end of June. The stake puts it as the 18th biggest position in the Berkshire portfolio behind Amazon and Constellation Brands, according to VerityData. Berkshire's equity portfolio is worth about $300 billion, so it is possible that Buffett's two investing lieutenants Todd Combs and Ted Weschler were more responsible for this purchase rather than the 'Oracle of Omaha' himself. Buffett said one of his investment managers was behind the Amazon investment in 2019. The insurer's stock shot up 6% in extended trading following Berkshire's disclosure. Shares of UnitedHealth were down nearly 50% for 2025 through Thursday's close before Buffett's filing. The largest private health insurer has become the face of a public blowback in this country against the rising costs of health care. UnitedHealth is currently facing a Justice Department investigation into its Medicare billing practices. In May, the company pulled its annual earnings outlook and CEO Andrew Witty stepped down. Last month, UnitedHealth gave a new 2025 outlook that was well short of Wall Street estimates, hitting the stock further. Buffett, who's turning 95 this month, has been critical of the healthcare system in the U.S., calling it a 'tapeworm' on the economy due to its high costs. In 2018, he, along with Jeff Bezos and Jamie Dimon, launched a joint venture to improve healthcare for their employees and potentially for all Americans, but it was eventually shut down. UnitedHealth isn't the only stock Berkshire picked up recently. In fact, the conglomerate also took small stakes in steel manufacturer Nucor, outdoor advertising company Lamar Advertising and security firm Allegion. Berkshire also got back into homebuilders Lennar and DR Horton. Shares of Nucor jumped nearly 8% in afterhours trading, while Lennar and DR Horton popped about 3% each. Buffett also pared his positions in Bank of America and Apple. The Apple stake was cut by about 7%. Berkshire's largest positions as of the end of the second quarter were Apple, American Express, Bank of America, Coca-Cola and Chevron. The legendary investor is stepping down as Berkshire CEO at the end of the year, handing over the reins to Greg Abel. Buffett will stay on as chairman of the board. It's still unclear who will be in charge of Berkshire's gigantic equity portfolio, though Buffett has alluded that Abel will be making all capital allocation decisions at the conglomerate. UnitedHealth attracted other buyers last quarter, according to filings, including Michael Burry and Appaloosa Management's David Tepper. Shares of the insurer are trading at a price-earnings ratio of just under 12, near its lowest in more than a decade. There was speculation regarding a mystery stock Buffett was buying as Berkshire had asked for permission to keep certain holdings secret last quarter. It turns out the secret stock was a combination of multiple positions and likely the stakes added in DR Horton, Nucor and Lennar 'A' shares.
Bloomberg
7 minutes ago
- Bloomberg
Key Economic Figures Going to Trump-Putin Summit
Key economic figures from the US and Russia will be at the summit for President Donald Trump and Russian President Vladimir Putin today in Alaska. The focus is not just about ending the war in Ukraine. Bloomberg's Annmarie Hordern is live Anchorage. (Source: Bloomberg)
