Summit Therapeutics Inc. experienced a notable surge in its stock price following the announcement of promising late-stage trial results for its lung-cancer treatment, ivonescimab.
The biotech company’s shares jumped more than 30% in premarket trading on Monday, as the experimental drug demonstrated superior efficacy compared to Merck’s established treatment, Keytruda.
In the recently released data, ivonescimab was shown to reduce the risk of disease progression or death by 49% in patients with advanced non-small cell lung cancer (NSCLC), outperforming Keytruda. According to Summit Therapeutics, the median progression-free survival for patients treated with ivonescimab was 11.1 months, compared to 5.8 months for those receiving Keytruda.
The trial results, presented at the International Association for the Study of Lung Cancer’s conference in San Diego, mark the first instance where a drug has achieved a clinically meaningful benefit over Keytruda in a late-stage study for this patient group. Despite these results, Merck’s stock fell by 2.5% in premarket trading. However, analysts suggest that the decline may be an overreaction, as Keytruda remains a leading treatment with substantial market presence.
Leerink Partners analysts noted that the observed drop in Merck’s stock might not reflect an immediate threat to Keytruda. The drug generated approximately $7.3 billion in sales in the second quarter of this year, reflecting a 16% increase from the previous year. Analysts believe that while Summit’s results are significant, they do not pose an imminent risk to Keytruda’s dominance in the market.
Summit Therapeutics’ CEO, Maky Zanganeh, highlighted the potential of ivonescimab to advance cancer treatment, noting its promise not only for lung cancer but potentially for other types of tumors as well. The company plans to initiate a multiregional late-stage trial of ivonescimab early next year to further assess its efficacy and potential for broader application.
Despite the positive data, analysts advise caution. Some argue that the trial was conducted solely in China and that additional US data will be necessary before ivonescimab can secure approval and challenge Keytruda’s established position in the market. Furthermore, Merck’s Keytruda benefits from a robust body of evidence and a significant pipeline, which may mitigate the impact of competition from new entrants like ivonescimab in the near term.
Summit Therapeutics’ stock has seen a remarkable increase of 370% year-to-date, while the S&P 500 has grown by 13.4% over the same period. This dramatic rise underscores the market’s optimism about the company’s new treatment and its potential to reshape the landscape of lung-cancer therapy.
Market Watch, Investor’s Business Daily, and BioSpace contributed to this report.
