Yahoo Finance Summit (SMMT) Stock Surges 57% in the Past Month: Here's Why
Summit Therapeutics SMMT is a clinical-stage biopharmaceutical company focused on the development and marketing of medicinal therapies to treat oncology indications with serious unmet needs.
Currently, Summit has only one drug in its pipeline, ivonescimab (SMT112), which has been licensed from China-based Akeso for development and marketing in certain territories, including the United States. The drug is being evaluated across multiple oncology indications, including lung cancer, breast cancer and colorectal cancer.
In the past month, the company’s stock has risen 57.1%. This upside came after management reported encouraging results from the phase III HARMONi-2 study, wherein treatment with ivonescimab bested Merck’s MRK blockbuster oncology drug Keytruda in treating certain patients with non-small cell lung cancer (NSCLC).
The HARMONi-2 study evaluated ivonescimab against the Merck drug in patients with locally advanced or metastatic NSCLC whose tumors have positive PD-L1 expression. Treatment with the drug demonstrated a statistically significant and clinically meaningful improvement in the primary endpoint of progression-free survival (PFS).
Per SMMT, ivonescimab is the first drug to achieve a statistically significant improvement compared to Merck’s Keytruda in a head-to-head set-up in a late-stage study in NSCLC indication. This was likely a major factor that sent Summit’s share price soaring after the results were announced.
Detailed results from the HARMONi-2 study will be presented at a major medical meeting later this year.
Unlike Keytruda, 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. Management believes that this dual mechanism differentiates ivonescimab from currently available therapies for solid tumors as there is a potentially higher expression of both PD-1 and VEGF in tumor tissue compared to the normal tissues in the body.
Year to date, Summit’s shares have skyrocketed 188.9% against the industry’s 6.6% fall.
Image Source: Zacks Investment Research
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, which was received last month, 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 acquired an exclusive license from Akeso in 2022 to develop and market ivonescimab in the United States, Canada, Europe and Japan. This deal is potentially valued at up to $5 billion, including $500 million in upfront payment made by Summit to Akeso. Earlier this month, management announced that it has expanded the licensing deal, which now covers Latin America (including Mexico and all countries in Central America, South America and the Caribbean), the Middle East and Africa.
Currently, Summit is conducting two late-stage studies, namely HARMONi and HARMONi-3 studies, evaluating ivonescimab in separate a setting for NSCLC indication. With no marketed drugs in its portfolio, the successful development and potential commercialization of its sole pipeline drug will strengthen the company’s growth prospects.
Summit Therapeutics PLC Price
Summit Therapeutics PLC price | Summit Therapeutics PLC Quote
Zacks Rank & Key Picks
Summit currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector are Arcutis Biotherapeutics ARQT and Heron Therapeutics HRTX, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Arcutis Biotherapeutics’ 2024 loss per share have narrowed from $2.49 to $1.60. During the same period, the loss estimates per share for 2025 have narrowed from $1.77 to $1.14. Year to date, shares of Arcutis have surged 140.9%.
Earnings of Arcutis Biotherapeutics beat estimates in three of the last four quarters while missing the mark on one occasion. Arcutis delivered a four-quarter average earnings surprise of 14.93%.
In the past 60 days, estimates for Heron Therapeutics’ 2024 loss per share have narrowed from 22 cents to 10 cents. During the same period, estimates for 2025 have improved from a loss of 9 cents to earnings of 1 cent. Year to date, HRTX’s shares have appreciated 114.1%.
Earnings of Heron Therapeutics beat estimates in three of the last four quarters while missing the mark on one occasion. HRTX delivered a four-quarter average earnings surprise of 30.33%.
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
Heron Therapeutics, Inc. (HRTX) : Free Stock Analysis Report
Summit Therapeutics PLC (SMMT) : Free Stock Analysis Report
Arcutis Biotherapeutics, Inc. (ARQT) : Free Stock Analysis Report
