Latest news with #Akeso
Sydney Morning Herald
11 hours ago
- Business
- Sydney Morning Herald
China's latest boom is sounding alarm bells in America
It marked a watershed moment for the pharmaceutical sector, which had long written off China as a nation that excelled in drug manufacturing and 'copycat' treatments but not medicine discovery. Akeso's debut on the world stage has been described as a 'DeepSeek' moment for the industry – a reference to the sudden emergence of a highly advanced AI chatbot out of China earlier this year, which took US tech giants by surprise and wiped close to $US1 trillion ($1.5 trillion) off global stock markets. Summit's shares are up more than 600 per cent since first announcing the lung cancer trial results. 'The two large innovators in our industry today are the US and China,' Sir Pascal Soriot, the boss of AstraZeneca, said in March. 'China is, I think over the next five to 10 years, going to emerge as really a driving force for innovation in our sector.' It sets the stage for a growing tussle between the US and China over the future of drug development. Donald Trump has been clear that he wants pharmaceutical giants to be investing more in America. Biopharmaceutical companies and their suppliers account for 4.9 million jobs and are worth around $US1.65 trillion ($2.6 trillion) to the US. However, drug companies are increasingly turning east when it comes to investing in new drugs and clinical trials. Not only is China becoming an easier place to research and create new drugs, but the Trump administration is also shaking faith in the US. Vaccine sceptic health secretary Robert F Kennedy Jr has prompted much anxiety in the industry. By contrast, China is 'very business friendly and stable' Novartis boss Vas Narasimhan said in May. Drugs boom Beijing has been attempting to win more pharma investment for years – and specifically attempting to boost funding for drug innovation. Drug discovery was a key pillar of the 'Healthy China 2030″ strategy unveiled in 2016, aimed at helping the country cope with its ageing population. Loading The focus has already paid dividends. Over the past three years alone, the number of Chinese drugs in development has doubled to 4,391. Almost half are either novel drugs or something known as a 'fast-follower', where treatments are quickly developed on the back of breakthroughs by rivals. According to Barclays, the number of so-called 'first-in-class' drugs under development in China rose to around 120 last year, having been in the single digits in 2015. First-in-class essentially measures the level of innovation by looking at the highest development stage a drug has reached and the earliest time it reached that stage. The growth in China is unmatched. While the US, which has long been regarded as the world leader in drug discovery, has more first-in-class drugs in development, at 151, the growth rate has been much slower. 'The shift isn't incremental, it's tectonic,' says Abhishek Jha, the founder of life sciences data company Elucidata. One crucial part of Beijing's push to drive more drug discovery has been speeding up clinical trials. In China, regulators allow businesses to get studies up and running quicker, and then update them as they progress. This can provide early data on new drugs, which is a major draw for multinational companies looking for novel treatments that show signs of working well. It has sparked a boom in studies taking place in China. According to figures from the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), China accounted for around 18 per cent of clinical trials sponsored by companies in 2023 compared to just 5 per cent in 2013. Meanwhile, the US proportion has dipped from 28 per cent to 23 per cent. Clinical trial enrolment in China is surging, with around 40 per cent now having more than 100 participants. Bitter pill Fewer regulatory barriers are just one of a number of reasons pharma companies are turning to China. Workers, too, are less averse to working unsociable hours than they would be in Western nations. Shirley Chen, a Barclays analyst, says: 'Chinese scientists may be happier to accept very long work hours and people like hospital personnel [where trials take place] are actually okay to do night shifts.' Major drug giants are now scouring China for potential deals. The likes of GSK, AstraZeneca and Merck have all struck deals worth more than $US1 billion to get the rights to develop and sell Chinese drugs outside the country. The rise of China's pharmaceutical industry has started to raise alarm bells in the US. Trump may be focused on returning manufacturing jobs to the US, yet some say he should be concerned that more high-quality jobs and research posts are starting to drift to China. 'Five years ago, US pharmaceutical companies didn't license any new drugs from China,' Scott Gottlied, the former Food and Drug Administration commissioner, wrote earlier this month. 'By 2024, one third of their new compounds were coming from Chinese biotechnology firms.' He warned that the shift of clinical trials to Asia could undermine innovation in the US as companies choose to 'divert funds that might otherwise bolster innovation hubs such as Boston's Kendall Square or North Carolina's Research Triangle'. Loading 'The US biotechnology industry was the world's envy, but if we're not careful, every drug could be made in China.' While Trump exempted most countries' pharmaceutical industries from tariffs in his 'liberation day' blitz, China was not spared. That means physically manufacturing drugs for the US in China is out of the question, for now at least.
The Age
11 hours ago
- Business
- The Age
China's latest boom is sounding alarm bells in America
It marked a watershed moment for the pharmaceutical sector, which had long written off China as a nation that excelled in drug manufacturing and 'copycat' treatments but not medicine discovery. Akeso's debut on the world stage has been described as a 'DeepSeek' moment for the industry – a reference to the sudden emergence of a highly advanced AI chatbot out of China earlier this year, which took US tech giants by surprise and wiped close to $US1 trillion ($1.5 trillion) off global stock markets. Summit's shares are up more than 600 per cent since first announcing the lung cancer trial results. 'The two large innovators in our industry today are the US and China,' Sir Pascal Soriot, the boss of AstraZeneca, said in March. 'China is, I think over the next five to 10 years, going to emerge as really a driving force for innovation in our sector.' It sets the stage for a growing tussle between the US and China over the future of drug development. Donald Trump has been clear that he wants pharmaceutical giants to be investing more in America. Biopharmaceutical companies and their suppliers account for 4.9 million jobs and are worth around $US1.65 trillion ($2.6 trillion) to the US. However, drug companies are increasingly turning east when it comes to investing in new drugs and clinical trials. Not only is China becoming an easier place to research and create new drugs, but the Trump administration is also shaking faith in the US. Vaccine sceptic health secretary Robert F Kennedy Jr has prompted much anxiety in the industry. By contrast, China is 'very business friendly and stable' Novartis boss Vas Narasimhan said in May. Drugs boom Beijing has been attempting to win more pharma investment for years – and specifically attempting to boost funding for drug innovation. Drug discovery was a key pillar of the 'Healthy China 2030″ strategy unveiled in 2016, aimed at helping the country cope with its ageing population. Loading The focus has already paid dividends. Over the past three years alone, the number of Chinese drugs in development has doubled to 4,391. Almost half are either novel drugs or something known as a 'fast-follower', where treatments are quickly developed on the back of breakthroughs by rivals. According to Barclays, the number of so-called 'first-in-class' drugs under development in China rose to around 120 last year, having been in the single digits in 2015. First-in-class essentially measures the level of innovation by looking at the highest development stage a drug has reached and the earliest time it reached that stage. The growth in China is unmatched. While the US, which has long been regarded as the world leader in drug discovery, has more first-in-class drugs in development, at 151, the growth rate has been much slower. 'The shift isn't incremental, it's tectonic,' says Abhishek Jha, the founder of life sciences data company Elucidata. One crucial part of Beijing's push to drive more drug discovery has been speeding up clinical trials. In China, regulators allow businesses to get studies up and running quicker, and then update them as they progress. This can provide early data on new drugs, which is a major draw for multinational companies looking for novel treatments that show signs of working well. It has sparked a boom in studies taking place in China. According to figures from the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), China accounted for around 18 per cent of clinical trials sponsored by companies in 2023 compared to just 5 per cent in 2013. Meanwhile, the US proportion has dipped from 28 per cent to 23 per cent. Clinical trial enrolment in China is surging, with around 40 per cent now having more than 100 participants. Bitter pill Fewer regulatory barriers are just one of a number of reasons pharma companies are turning to China. Workers, too, are less averse to working unsociable hours than they would be in Western nations. Shirley Chen, a Barclays analyst, says: 'Chinese scientists may be happier to accept very long work hours and people like hospital personnel [where trials take place] are actually okay to do night shifts.' Major drug giants are now scouring China for potential deals. The likes of GSK, AstraZeneca and Merck have all struck deals worth more than $US1 billion to get the rights to develop and sell Chinese drugs outside the country. The rise of China's pharmaceutical industry has started to raise alarm bells in the US. Trump may be focused on returning manufacturing jobs to the US, yet some say he should be concerned that more high-quality jobs and research posts are starting to drift to China. 'Five years ago, US pharmaceutical companies didn't license any new drugs from China,' Scott Gottlied, the former Food and Drug Administration commissioner, wrote earlier this month. 'By 2024, one third of their new compounds were coming from Chinese biotechnology firms.' He warned that the shift of clinical trials to Asia could undermine innovation in the US as companies choose to 'divert funds that might otherwise bolster innovation hubs such as Boston's Kendall Square or North Carolina's Research Triangle'. Loading 'The US biotechnology industry was the world's envy, but if we're not careful, every drug could be made in China.' While Trump exempted most countries' pharmaceutical industries from tariffs in his 'liberation day' blitz, China was not spared. That means physically manufacturing drugs for the US in China is out of the question, for now at least.
South China Morning Post
a day ago
- Business
- South China Morning Post
Chinese biotech firm Akeso tumbles on US partner Summit's setback for cancer drug
Chinese biotech firm Akeso, whose cancer drug has been hailed as a breakthrough for the nation's pharmaceutical industry, suffered a setback after less favourable clinical data dashed hopes for a quick US regulatory approval. Advertisement Akeso's shares fell 11.6 per cent to HK$73.65 in the morning session on Monday. US partner Summit Therapeutics' Nasdaq-listed shares slumped 30.5 per cent on Friday to US$18.22, the lowest since April 9. Summit said on Friday that the US Food and Drug Administration (FDA) indicated that a 'statistically significant' benefit on overall survival – from start of treatment to death – was required to support marketing approval for the ivonescimab antibody. Ivonescimab targets non-small cell lung cancer patients whose tumours showed a genetic abnormality that drives unusual cell growth. Akeso is based in Zhongshan in China's southern Guangdong province. Photo: Handout Summit said the first global phase-three clinical trial of Akeso's ivonescimab showed that it was effective in restoring patients' immune systems capabilities to attack tumour cells and slowed tumour progression. But ivonescimab had not yet demonstrated a survival benefit for patients in the study.
Yahoo
2 days ago
- Business
- Yahoo
Why Summit Therapeutics Plunged Today
Summit Therapeutics released more data from another HARMONi phase 3 trial. Results were "mixed," which perhaps led to some disappointment in this stock, which had rocketed higher over the past year. Still, all hope is not lost, analysts say. 10 stocks we like better than Summit Therapeutics › Shares of Summit Therapeutics (NASDAQ: SMMT) have plunged 31% as of 1:23 p.m. ET Friday, following the release of some trial data this morning. Summit has been a tremendous winner over the past year, as its bispecific antibody lung cancer drug ivonescimab outperformed prior standards of care in phase 3 trials performed in China by Summit's partner Akeso (OTC: AKES.F). While today's results weren't all bad by any means, apparently investors had hoped for more conclusive information about survival rates. With such high expectations, it appears investors are taking profits or de-risking in a big way. Today's release showed results of the fourth phase 3 trial known as "HARMONi," the first to include a significant Western patient population (about a third of participants). Last year's positive results largely came from a China-only study. On the positive side, today's data did show that ivonescimab in combination with chemotherapy reduced the risk of disease progression or death by 48%. In addition, the company noted no significant differences between the Asian and Western patient populations. However, the trial didn't show a "statistically significant" benefit in overall survival. Summit has been hoping to apply for FDA approval for ivonescimab in the U.S., but the FDA has told the company it will need to show that statistically significant survival benefit in order to get it. Investors may be getting nervous about that eventual approval. However, analysts don't believe investors should panic. Jefferies biotech analyst Kelly Shi noted the survival endpoint still has a chance of being reached as the data matures further and Western trial patients continue to show survival benefits. So basically, it doesn't appear as though the trial has lasted long enough to reach the statistically significant survival threshold, which doesn't mean that it won't get there. Another analyst was also bullish on the data, despite today's drop. Cantor Fitzgerald biotech analyst Eric Schmidt said, "We think it is fairly clear that this is a drug! ... In each of these four trials, the data posted by ivonescimab appear differentiated from and superior to PD-1 therapy." Therefore, investors may want to take a look at Summit on this drop. While today's data didn't meet the threshold many investors had been hoping for, there is still a chance that it will with more time. Given the success ivonescimab has demonstrated over the past year, it seems likely, though not certain, the drug will eventually be approved. Of course, it's a bit difficult to value a stock like Summit, which has a promising drug candidate but no real current revenues and a market cap that, even down 30% today, is still over $13.5 billion. Before you buy stock in Summit Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Summit Therapeutics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group and Summit Therapeutics. The Motley Fool has a disclosure policy. Why Summit Therapeutics Plunged Today was originally published by The Motley Fool
Business Insider
3 days ago
- Business
- Business Insider
Morgan Stanley Sticks to Their Buy Rating for Akeso, Inc. (9926)
In a report released yesterday, Jack Lin from Morgan Stanley maintained a Buy rating on Akeso, Inc. (9926 – Research Report), with a price target of HK$87.00. The company's shares closed yesterday at HK$83.80. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Lin is ranked #6883 out of 9552 analysts. Currently, the analyst consensus on Akeso, Inc. is a Strong Buy with an average price target of HK$103.71, a 23.76% upside from current levels. In a report released yesterday, UBS also maintained a Buy rating on the stock with a HK$112.10 price target.
