Summit Therapeutics’ Ivonescimab: A Potential Game-Changer in Lung Cancer Treatment?
JMP Securities has initiated coverage on Summit Therapeutics Inc. (SMMT), highlighting the company’s promising foray into oncology. After initially focusing on infectious diseases, Summit pivoted to oncology in 2022, acquiring the rights to ivonescimab, a PD-1 X VEGF bispecific antibody, from Akeso for a hefty $500 million upfront payment and potential milestones reaching $5 billion.
The analysts at JMP believe that Summit Therapeutics represents a unique investment opportunity, particularly in light of ivonescimab’s potential. Despite the incredible success of established drugs like Merck & Co. Inc.’s Keytruda (pembrolizumab) and Bristol Myers Squibb & Co.’s Opdivo (nivolumab), ivonescimab stands out as a formidable contender in the lung cancer treatment landscape. Early data suggests it may offer higher response rates and a longer median progression-free survival compared to these existing treatments.
In September, Summit Therapeutics released data from the primary analysis of the Phase 3 HARMONi-2 trial, conducted in China. The results were impressive. Ivonescimab, administered as a monotherapy, demonstrated a statistically significant improvement in the primary endpoint – progression-free survival – compared to monotherapy pembrolizumab (Keytruda), achieving a hazard ratio (HR) of 0.51. This means patients receiving ivonescimab were less likely to experience disease progression or death compared to those on Keytruda.
Based on these promising results, JMP Securities has initiated coverage on Summit Therapeutics with a Market Outperform rating and a price target of $32. While overall survival data is still being collected, the analyst team believes ivonescimab has a strong chance of demonstrating an overall survival advantage over pembrolizumab in first-line non-small cell lung cancer (NSCLC) in future data updates.
With multiple global Phase 3 studies currently underway and robust head-to-head data supporting its efficacy, Summit Therapeutics is poised to potentially commercialize ivonescimab for more targeted patient groups, including EGFRm and first-line NSCLC. If successful, the drug could achieve peak global revenue of an estimated $17.9 billion by 2034, solidifying its position in the NSCLC market.
This significant potential has already translated into a positive market reaction. SMMT stock is up 5.33% at $20.00 at the time of writing this article. The future looks bright for Summit Therapeutics and ivonescimab, especially if the ongoing clinical trials continue to demonstrate its strong efficacy and safety profile.
