In a high-stakes maneuver that could reshape the oncology landscape, AstraZeneca Plc (NASDAQ:AZN) is reportedly in talks with Summit Therapeutics Inc. (NASDAQ:SMMT) about a partnership worth up to $15 billion.
What Does This Mean?
The deal would give AstraZeneca the rights to a lung cancer drug called ivonescimab.
Bloomberg reported that the discussions are private, citing sources familiar with the matter. Summit has also been in talks with other large pharmaceutical companies about the same drug.
Also Read: Summit Therapeutics’ Closely-Watched Lung Cancer Study Of Ivonescimab Misses Overall Survival Endpoint
Summit gained traction when, in September 2024, it released data from the primary analysis of the Phase 3 HARMONi-2 trial of ivonescimab conducted in China, sponsored by collaboration partner Akeso, Inc.
Ivonescimab slashed the risk of disease progression or death by 49% compared with Merck & Co Inc's (NYSE:MRK) Keytruda.
A Game-Changer Emerges
Cantor Fitzgerald initiated coverage on Summit in March, citing shares as undervalued.
Then, in April, Summit Therapeutics’ partner, Akeso, released topline data from the Phase 3 HARMONi-6/K112-306 trial.
Ivonescimab plus chemotherapy demonstrated a statistically significant and clinically meaningful improvement in PFS compared to BeiGene, Ltd’s (NASDAQ:ONC) Tevimbra (tislelizumab) plus chemotherapy.
According to Bloomberg, Summit has a market value of $17.4 billion and is mostly owned by its Chairman and Co-CEO, Bob Duggan, who holds nearly 75% of the company.
Duggan’s Winning Strategy
In 2015, Duggan was the CEO of Pharmacyclics Inc., which he sold to AbbVie Inc. (NYSE:ABBV) for $21 billion. Bloomberg News reported that Duggan personally earned over $3 billion from that deal.
In June, Bristol-Myers Squibb Co (NYSE:BMY) inked a similar licensing pact with Summit’s close rival, BioNTech SE (NASDAQ:BNTX)
The $11 billion pact focuses on BioNTech's investigational bispecific antibody, BNT327, across various solid tumor types.
Price Action: Summit Therapeutics shares were up 8.49% at $24.54, while AstraZeneca shares were down 1.93% at $69.76 at the time of publication on Thursday, according to Benzinga Pro.
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