Latest news with #SummitTherapeutics
Forbes
19 hours ago
- Business
- Forbes
Is SMMT Stock A Buy After Its Recent Plunge?
POLAND - 2025/01/09: In this photo illustration, the Summit Therapeutics company logo is seen ... More displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images) Summit Therapeutics (NASDAQ: SMMT) experienced a significant 30% decrease in its stock on Friday, May 30th, closing at $18. This sudden decline came even though the stock had doubled within the past year, driven by favorable updates regarding its lung cancer medication, ivonescimab. The recent drop was caused by a combination of trial outcomes. On a positive note, ivonescimab, when used alongside chemotherapy, reduced the risk of disease progression or mortality by 48%. Furthermore, the company detected no major differences between Asian and Western patient demographics, which holds great importance for future research. Nevertheless, the trial fell short of achieving the 'statistically significant' criteria for overall survival – which the FDA requires for approval. This understandably caused investors to react strongly. However, upon reflection, these results aren't as negative as the market perceived. In fact, we believe this actually brings Summit closer to obtaining FDA approval for ivonescimab since it demonstrates a reduced risk of disease progression and efficacy outside of Asia. Separately, take a look at – Buy, Sell, or Hold HIMS Stock? It's essential to keep in mind that Summit has yet to launch any commercial products, and ivonescimab has the potential to be a significant revenue generator. For biotech firms without market-ready products, their value hinges on the potential of their pipeline. The company has been depleting its resources, reporting net operating losses of $226 million last year and $610 million the year before. Despite the drop on Friday, we believe Summit remains worth considering. Naturally, there are risks involved. Any negative developments regarding its drug pipeline could severely impact the stock – the reaction on Friday clearly demonstrated its sensitivity to setbacks. The stock also has a history of performing poorly during market declines, evidenced by its staggering 94% drop during the 2022 inflation crisis compared to a 25% decline in the S&P 500, and its 78% decrease during the 2020 COVID-19 market correction versus a 34% drop in the S&P 500. Considering the latest results of ivonescimab, Summit Therapeutics could present a promising turnaround opportunity for investors willing to assess the risks involved. However, with numerous other robust investment choices available at present, careful consideration is necessary to determine if SMMT is the right selection. Keep in mind that there is always a significant risk associated with investing in a single stock, or a small number of stocks. Consider Trefis High Quality (HQ) Portfolio which, consisting of 30 stocks, has a proven track record of significantly outperforming the S&P 500 over the previous four-year period. Why is that? In aggregate, HQ Portfolio stocks offered superior returns with reduced risk compared to the benchmark index; they exhibited less volatility, as indicated by HQ Portfolio performance metrics.
Yahoo
a day ago
- Business
- Yahoo
Is Beaten-Down Summit Therapeutics Stock a Bad-News Buy?
Summit Therapeutics stock fell hard recently in response to disappointing clinical trial results. Ivonescimab failed to produced a statistically significant overall survival benefit in the phase 3 Harmoni trial. Ivonescimab has been approved by Chinese regulators, but Summit Therapeutics has a license to sell it outside of China. 10 stocks we like better than Summit Therapeutics › Shares of Summit Therapeutics (NASDAQ: SMMT) tanked more than 30% on Friday, May 30. Such dramatic price swings aren't unusual in the biotechnology industry; in this case, disappointing data from an important clinical trial drove the stock down. Stock markets have a tendency to sell first and ask questions later. After watching this stock plummet, some bargain-shoppers are wondering if it fell too far. Recent trial results missed the mark the company was hoping for, but the results weren't entirely discouraging. Let's weigh the bad news against the good to see if this stock could be a beaten-down bargain. Summit Therapeutics and its investors have been eagerly anticipating results from the phase 3 Harmoni trial of ivonescimab. It's a bispecific antibody that works like a compination of Keytruda (a PD-1 inhibitor) plus Avastin (a VEGF inhibitor). Summit's stock price rocketed higher in 2024 thanks to Harmoni-2 trial results that showed it outperformed Keytruda at limiting tumor growth in lung cancer patients. Although ivonescimab is already approved in China, it's not for sale in the U.S. and EU, where Summit Therapeutics has a license to sell it. The Harmoni trial enrolled second-line lung cancer patients and treated them with ivonescimab or a placebo plus standard chemo. The treatment reduced the risk of disease progression in terms of tumor growth by 48%, but failed to show a convincing overall survival benefit. Adding ivonescimab to standard chemo reduced patients' risk of death by 21%, but the results fell just outside a 95% confidence interval with a p-value of 0.057. It's highly unlikely the Food and Drug Administration will approve ivonescimab for sale in the U.S. based on the Harmoni trial results. According to Summit, the FDA has been clear about the need for a statistically significant overall survival benefit to support an application. The China-based company that owns ivonescimab, Akeso, recently earned a second approval to market the therapy to lung cancer patients in China. Keytruda sales rose to $29.5 billion last year, and a treatment that can outperform the leader could do even better. Ivonescimab is unlikely to earn approval in the U.S. for patients similar to those enrolled in the Harmoni trial. Given its ability to shrink tumors, though, it's probably just a matter of time before it produces statistically significant overall survival results for an underserved patient population. Tumor responses get attention, but oncologists are far more interested in giving patients a chance for long-term survival. Keytruda's a top seller now because it produced dramatic overall survival results, compared to the standard treatments of its time. The lack of convincing overall survival data so far for ivonescimab severely reduces the odds that it will go on to produce blockbuster sales in the places where Summit Therapeutics has a license to sell it. Despite the obvious challenges ahead, expectations are still sky-high. Drugmaker stocks tend to trade at mid-single-digit multiples of trailing annual sales. Summit has no sales, as ivonescimab is the only candidate in its pipeline. Despite the lack of options and an uncertain path forward, the stock finished May with a market cap above $13.5 billion. If ivonescimab goes on to produce sales anywhere near Keytruda's, investors who bought Summit Therapeutics at recent prices could reap enormous gains. Unfortunately, the Harmoni trial's failure to produce a convincing overall survival benefit suggests that future sales will be muted, even if the company can get it past the FDA. It's probably best to watch this story play out from a safe distance. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — 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 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Summit Therapeutics. The Motley Fool has a disclosure policy. Is Beaten-Down Summit Therapeutics Stock a Bad-News Buy? was originally published by The Motley Fool Sign in to access your portfolio
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
Telegraph
3 days ago
- Business
- Telegraph
China targets a new frontier in its bid to eclipse the West
For the world's leading cancer doctors and scientists, few events in the calendar are more prestigious than the annual meeting of the American Society of Clinical Oncology (Asco). Each year, tens of thousands of top researchers gather to unveil pivotal scientific breakthroughs and new therapies that will shape the future of cancer care across the globe. The event has changed the way scientists view breast cancer, challenged views on colorectal cancer and offered novel ideas on how to help seriously ill patients. The discovery which everyone was speaking about last year was one made by a little-known biotech firm called Akeso. Its new lung cancer drug had achieved something 'unprecedented', its US partner Summit Therapeutics said on the eve of Asco. The new experimental drug 'decisively beat' Merck's blockbuster lung cancer treatment in clinical trials. The news came as a shock – not just because it challenged Merck's well-known dominance in lung cancer drugs, but because Akeso was Chinese. 'DeepSeek' moment For years, Asco's annual meeting has been dominated by American scientists. However, last year was different. 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 $1 trillion (£740bn) off global stock markets. Summit's shares are up more than 600pc 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 4.9m jobs and are worth around $1.65 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. 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 18pc of clinical trials sponsored by companies in 2023 compared to just 5pc in 2013. Meanwhile, the US proportion has dipped from 28pc to 23pc. Clinical trial enrolment in China is surging, with around 40pc 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 $1bn 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'. '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. However, unless the US rights the ship, many of its treatments may well be designed in China in future. As pharmaceutical leaders made their way to the annual Asco meeting this week, the shifting power balance will no doubt be on attendees' minds. Industry chiefs may be congregating at a US research conference, but attention is turning to the east.
