Summit Therapeutics 'Unique Investment In Oncology,' Lead Drug Candidate Shows Promise Over Keytruda And Opdivo

JMP Securities initiated coverage on Summit Therapeutics Inc. SMMT, noting the company’s initial focus on infectious disease. Later, in 2022, the company pivoted to oncology and in-licensed ivonescimab (PD-1 X VEGF bispecific) from Akeso for $500 million upfront and $5 billion in potential milestones.

The analyst says, “We believe Summit shares represent a unique investment opportunity.”

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JMP notes despite the incredible clinical and commercial success of Merck & Co. Inc’s MRK Keytruda (pembrolizumab) and Bristol Myers Squibb & Co’s BMY Opdivo (nivolumab), ivonescimab seems as if a formidable opponent has appeared offering higher response rates and a longer median progression-free survival.

In September, Summit Therapeutics released data from the primary analysis of the Phase 3 HARMONi-2 trial of ivonescimab conducted in China.

Ivonescimab monotherapy demonstrated a statistically significant improvement in the trial’s primary endpoint, progression-free survival, compared to monotherapy pembrolizumab, achieving a hazard ratio (HR) of 0.51.

JMP initiated Summit Therapeutics with a Market Outperform rating and a price target of $32.

The analyst also notes that while the overall survival data are still in progress, Ivonescimab has a strong chance of showing an overall survival advantage over pembrolizumab in first-line non-small cell lung cancer in a future data update.

The analyst notes that with numerous global Phase 3 studies in progress and strong head-to-head data for monotherapy, Summit is positioned to potentially commercialize its treatment in the more targeted EGFRm and first-line NSCLC patient groups.

If successful, this could lead to an estimated $17.9 billion in peak global revenue upon potential entry into the first-line NSCLC market by 2034.

Price Action: SMMT stock is up 5.33% at $20.00 at last check Monday.

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