Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Wednesday, Evercore ISI began coverage on Summit Therapeutics plc (NASDAQ:SMMT) shares, assigning an Outperform rating and setting a price target of $30.00. The $13.65 billion market cap company, which has seen its stock surge over 329% in the past year, is drawing attention for its leading drug candidate, ivonescimab, which they believe could succeed Keytruda as the next major cancer treatment.
The positive sentiment from Evercore ISI stems from recent clinical trial results presented by Summit’s partner, Akeso, at the World Conference on Lung Cancer in 2024 (WCLC24). The data from the HARMONi-2 study indicated that ivonescimab outperformed Keytruda in a first-line lung cancer setting. According to InvestingPro data, analyst targets for SMMT range from $23.63 to $45.03, with the company maintaining a FAIR financial health score despite current unprofitability.
Evercore ISI highlighted the unique properties of ivonescimab, noting its dual action as a PD-1xVEGF bispecific antibody. This trait allows the drug to exhibit efficacy that surpasses the expectations for a typical antibody combination therapy. Want deeper insights? InvestingPro subscribers get access to 10+ additional ProTips and comprehensive analysis through our Pro Research Reports, available for 1,400+ top stocks.
While acknowledging that there are still questions to be answered about ivonescimab’s long-term success, Evercore ISI expressed confidence in the drug’s promising clinical performance. The firm anticipates that the drug’s market potential has not been fully recognized, suggesting that there could be significant upward movement for Summit Therapeutics’ stock as the drug continues to develop. The stock currently shows a negative beta of -1.04, indicating it often moves counter to broader market trends.
Summit Therapeutics has not yet provided any additional comments on the new coverage or the future plans for ivonescimab’s development and potential market entry.
In other recent news, Summit Therapeutics reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of -0.07 USD, slightly exceeding the forecasted -0.08 USD. Despite this minor earnings beat, the company did not report revenue for the quarter. Summit Therapeutics ended the year with a strong cash position of $412 million and no debt, reflecting a solid financial footing. Stifel analysts maintained a Hold rating on the company’s stock with a $40.00 target, attributing recent market volatility to merger and acquisition speculation. Meanwhile, H.C. Wainwright reiterated a Buy rating with a $44.00 price target, emphasizing the potential of Summit’s investigational therapy, ivonescimab, in ongoing Phase 3 trials. Stifel also highlighted the significance of upcoming trial data, particularly from the HARMONi-2 and HARMONi-6 trials, expected by 2025. Additionally, Summit Therapeutics is expanding its clinical trials in collaboration with Pfizer (NYSE:PFE), focusing on its lead asset, ivonescimab, in various oncology indications.
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