On Monday, Citi made a notable adjustment to its outlook on Summit Therapeutics plc (NASDAQ:SMMT), increasing the biotech company's price target to $19.00 from the previous $13.00, while reaffirming a Buy rating on the stock. The revised target comes in response to the company's latest clinical trial results, which have shown promising efficacy for its drug candidate ivonescimab.
Summit Therapeutics recently reported data from a head-to-head study comparing ivonescimab to the established immunotherapy drug Keytruda. The results indicated that ivonescimab achieved a progression-free survival hazard ratio (PFS HR) of 0.51, surpassing the clinical expectations set against Keytruda, which is considered a gold-standard treatment.
The firm highlighted that the data exceeded what most investors, including their analysts, had anticipated. Prior expectations were centered around an HR of approximately 0.60, which would have already been considered a significant achievement. However, ivonescimab's performance suggests it could be a formidable competitor to Keytruda, potentially altering the treatment landscape for lung cancer.
Citi's commentary emphasized the clinical significance of the separation in the PFS curve between ivonescimab and Keytruda, indicating a robust level of efficacy. The firm also pointed to upcoming data readouts from additional HARMONi trials, which are expected to further validate ivonescimab's potential. Notably, the HARMONi-2 trial does not allow for crossover, which could preserve an anticipated overall survival benefit, given the meaningful PFS observed.
Summit Therapeutics has been elevated to Citi's Top Pick in light of these developments, with the firm expressing confidence in the future prospects of ivonescimab as a novel therapy option for lung cancer. The company's stock price target has been raised accordingly, with the firm's Buy rating remaining in place.
In other recent news, Summit Therapeutics has seen a series of noteworthy developments. H.C. Wainwright has maintained a Buy rating on the company, highlighting the potential of Summit's ivonescimab in areas where Merck & Co.'s KEYTRUDA has shown ineffectiveness. This follows Merck's termination of two clinical trials involving KEYTRUDA, opening opportunities for ivonescimab's utilization.
In addition, H.C. Wainwright initiated coverage with a Buy rating, citing ivonescimab's promising early comparisons to existing treatments. Citi also reaffirmed its Buy rating, highlighting upcoming clinical trial presentations as key catalysts. Stifel raised the price target for Summit Therapeutics, reflecting a more optimistic outlook for ivonescimab.
Summit Therapeutics reported changes in its board of directors and the results of its annual shareholders' meeting. Ujwala Mahatme, a board member, resigned to focus on other professional commitments. At the annual meeting, all eight director nominees were elected to serve another year, and PricewaterhouseCoopers LLP was appointed as the independent auditor for the fiscal year ending December 31, 2024.
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