On Monday, Summit Therapeutics plc (NASDAQ:SMMT) saw its stock price target increased by Stifel, a financial services firm, to $25.00, up from the previous target of $14.00. The company has retained its Buy rating on the stock. This adjustment follows the release of data from the HARMONi-2 study, which addresses critical questions regarding the efficacy of Summit's ivonescimab bispecific antibody in comparison to existing treatments.
The HARMONi-2 study data indicated a 0.51 progression-free survival hazard ratio (PFS HR) when ivonescimab was compared to Keytruda, a current standard treatment. This data suggests that ivonescimab may offer a significant advantage over PD-[L]1 antibodies, a class of cancer immunotherapy drugs.
The total addressable market (TAM) for PD-[L]1 treatments is estimated to be around $50 billion and is expected to grow, highlighting the potential for Summit's therapy.
Summit Therapeutics' management has expressed confidence that the application of ivonescimab will extend beyond lung cancer. They anticipate revealing a comprehensive development plan that projects peak revenues by the early 2030s, with patents lasting until approximately 2040. The company also maintains exclusive rights to any next-generation versions of ivonescimab.
Safety data for ivonescimab has shown a reduction in VEGF-related toxicity, such as bleeding, based on a patient pool of 1,800. This safety profile is expected to enable ivonescimab to capture a wide market opportunity.
The revised stock price target of $25 by Stifel incorporates the potential sales of ivonescimab in first-line nonsquamous non-small cell lung cancer (NSCLC), taking into account the benefits in price and treatment duration compared to Keytruda.
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