JMP Securities initiated coverage on Summit Therapeutics Inc. (NASDAQ: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 (NYSE:MRK) Keytruda (pembrolizumab) and Bristol Myers Squibb & Co's (NYSE: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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