Shares of Summit Therapeutics Inc. (NASDAQ: SMMT) surged approximately 20% in premarket trading following an announcement from AstraZeneca Plc (NYSE: AZN). AstraZeneca plans to invest $2 billion in Summit by purchasing newly issued preferred stock, aiming to accelerate the development of Summit's cancer drug ivonescimab in combination with AstraZeneca's own medicines.
The investment involves AstraZeneca purchasing about 109,000 shares of Summit preferred stock, which are convertible into common stock at a ratio of 1:1,000. Upon completion, AstraZeneca is expected to hold rights equal to approximately 12% of Summit's outstanding shares, or about 10.6% on a fully diluted basis. The transaction is anticipated to close within a week.
As part of the agreement, the companies will test whether combining ivonescimab with Sone-Ve, an antibody-drug conjugate (ADC), is more effective than standard treatments in gastrointestinal cancers. Both companies will retain rights to develop and sell their respective drugs. Ivonescimab is a bispecific antibody that targets two proteins: PD-1, which helps cancer cells evade the immune system, and VEGF, which aids tumor blood vessel growth.
Summit holds exclusive rights to develop and sell ivonescimab in major regions outside China, while its partner Akeso Inc. retains rights in China and other regions. Summit has reported positive results from multiple Phase 3 trials this year, including a comparison to Merck & Co Inc.’s Keytruda in lung cancer and a global trial showing a progression-free survival of 6.8 months when combined with chemotherapy versus 4.4 months for a placebo.
Ivonescimab is currently approved in China for a type of lung cancer, and a Biologics License Application seeking U.S. approval for EGFR-mutated non-small cell lung cancer is under review by the FDA, with an assigned action date of Nov. 14, 2026.
