In 2024, Summit Therapeutics experienced a significant surge, soaring an impressive 584% in value.
In the whirlwind year of 2024, shares of biotech powerhouse Summit Therapeutics (SMMT 5.42%) experienced a staggering 583.7% surge, as per data from S&P Global Market Intelligence. This early-stage biotech company elated investors with the impressive progress of Ivonescimab, their monoclonal antibody drug for lung cancer, which propelled them into a higher league.
Ivonescimab's Triumphant Journey
Summit's stock soared due to two substantial spikes in 2024, each coinciding with the release of phase 3 trial results. In May, the HARMONi-A trial, a partnership between Summit and Akeso Biopharma, demonstrated that Ivonescimab, combined with chemotherapy, reduced disease progression or death by 54% in EGFR-mutated, locally advanced or metastatic non-small cell lung cancer (NSCLC) patients who had progressed following EGFR-TKI treatment.
Then, in September, the HARMONi-2 trial, in collaboration with Akeso, pitted Ivonescimab against Keystrauda, the norm for monoclonal antibody treatments in NSCLC patients with PD-L1 positive tumors. Ivonescimab emerged victorious, boasting an impressive progression-free survival (PFS) rate of 11.14 months versus Keytruda's 5.82 months. Although adverse side effects were slightly more prevalent with Ivonescimab, they remained within a manageable safety profile.
Subsequently, the Food and Drug Administration (FDA) awarded Ivonescimab the prestigious "fast track" designation, which fueled speculation of a speedier approval process.
The Making of a Blockbuster
Analysts predict that the end market for PDL-1 lung cancer drugs could reach a whopping $50 billion, making Ivonescimab a strong contender to join the ranks of blockbuster drugs. Despite Summit's stock retracing to $19.51 per share by year's end, and a further dip to $16.65 in the new year, Wall Street remains optimistic.
Truist analyst Asthika Goonewardene maintains a buy rating for Summit and sets a $35 price target, anticipating that Ivonescimab might be available in the U.S. and Europe as early as 2026. Goonewardene further believes that Ivonescimab's potential annual sales could reach "double-digit billions," elevating Summit as an irresistible takeover target for larger pharmaceutical companies.
Thus, while Summit's shares experienced remarkable growth in 2024, industry experts argue that there may still be untapped value to be discovered in this cutting-edge biotech stock.
Investors looking to capitalize on Summit Therapeutics' success should consider allocating some of their finance into the company, as the potential return on investing in Ivonescimab, the company's promising monoclonal antibody drug for lung cancer, could be significant. Analysts project that the end market for PDL-1 lung cancer drugs could reach an astronomical $50 billion, positioning Ivonescimab as a potential blockbuster drug.
