Zhitong Finance learned that previously released clinical data showed that compared with Keytruda, a major anti-cancer drug from MSD (MRK.US), Summit Therapeutics' (SMMT.US) dual-antibody drug Ivonescimab (PD-1/VEGF) reduced the risk of disease progression or death by 49% in the treatment of non-small cell lung cancer (NSCLC). After the data was released, Citi praised the data in a new report and recommended Summit Therapeutics as the preferred stock. The new data also prompted the drug developer's stock price to close 56% on Monday.

Citigroup analysts said Summit's drug candidate “decisively beat” Keytruda and surpassed “almost all clinical expectations” of the current “gold standard immunotherapy” Keytruda, indicating that it is a reliable emerging flagship drug.

As MSD's revenue pillar, Keytruda not only pioneered a new era of tumor immunotherapy, but also became the cornerstone of cancer treatment, gradually growing into one of the highest-grossing drugs in the world. In the first half of 2024, Keytruda's global sales reached 14.2 billion US dollars, and it is expected to exceed 30 billion US dollars for the whole year, accounting for 45% of MSD's total revenue. Keytruda's success is due to its ever-expanding range of indications, and has now been approved for around 40 indications.

As a result, Citi raised its target price for the stock from $13 to $19, and said Summit is expected to continue to rise due to positive data and investor demand for the company. The investment bank currently expects risk-adjusted sales to peak at around $7.8 billion in the US and Europe, which is higher than the previous estimate of $5.3 billion.