Summit announced a common stock offering, with underwriters having a 30-day option to purchase up to an additional $75 million of shares.
- Summit said that it plans to use the net proceeds from the proposed offering primarily to support the continued research and development of its lead drug candidate, ivonescimab.
- Ivonescimab is an experimental cancer drug designed to block both PD-1, which helps tumors evade the immune system, and VEGF, which helps tumors grow blood vessels.
- Summit said that a planned interim analysis of the HARMONi-6 study showed ivonescimab plus chemotherapy reduced the risk of death by 34% compared with tislelizumab plus chemotherapy.
Shares of Summit Therapeutics Inc. (SMMT) fell nearly 8% in Wednesday’s pre-market trade after the company announced a $500 million common stock offering.
All of the shares in the proposed offering are being offered by Summit, with underwriters having a 30-day option to purchase up to an additional $75 million of shares.
What Does SMMT Intend To Use The Proceeds For?
Summit said that it plans to use the net proceeds from the proposed offering, along with its existing cash and cash equivalents, primarily to support the continued research and development of its lead drug candidate, ivonescimab.
In addition, a portion of the proceeds will be allocated toward working capital needs, including day-to-day operating expenses, and other general corporate purposes.
What Is SMMT’s Ivonescimab Aimed At?
Ivonescimab is an experimental cancer drug designed to block both PD-1, which helps tumors evade the immune system, and VEGF, which helps tumors grow blood vessels.
By targeting both pathways in a single antibody, it is designed to bind more strongly to PD-1 when VEGF is present.
PD-1 is a protein that helps cancer cells evade the body's immune system, while VEGF is a protein that helps tumors grow by promoting the formation of new blood vessels. Ivonescimab is designed to target both at once.
Ivonescimab Shows Survival Advantage in HARMONi-6 Trial
Summit stated last week that in a planned interim analysis of the HARMONi-6 study, ivonescimab combined with chemotherapy significantly improved overall survival compared with tislelizumab plus chemotherapy, reducing the risk of death by 34%.
After a median follow-up of 21.4 months, the 24-month overall survival rate was 64.7% for patients receiving ivonescimab versus 48.6% for those treated with tislelizumab, with benefits observed across both PD-L1-positive and PD-L1-negative patient groups, the company said.
“For the first time, a Phase III clinical study has demonstrated a statistically significant overall survival benefit in front-line driver-mutation-negative non-small cell lung cancer compared to anti-PD-1 therapy in combination with chemotherapy,” said Summit CEO Maky Zanganeh.
How Did Retail Traders React To SMMT Stock?
Retail sentiment on Stocktwits around Summit trended in the ‘neutral’ territory at the time of writing.
SMMT stock is down 18% year-to-date and 34% over the past 12 months. The State Street SPDR S&P Biotech ETF (XBI) is up 56% over the past 12 months, while the Vanguard Small-Cap Index Fund ETF (VB) is up 25%.
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