Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - UBS initiated coverage on Summit Therapeutics plc (NASDAQ:SMMT) with a Buy rating and a $30.00 price target, citing the potential of its lead cancer drug candidate. The stock, currently trading at $21.28, has shown remarkable strength with a 161% return over the past year. According to InvestingPro data, analyst targets for SMMT range from $12.19 to $44.82.
The investment bank believes Summit’s ivonescimab could become the new standard of care in front-line non-small cell lung cancer (NSCLC) treatment, with potential peak sales exceeding $7 billion. With a market capitalization of $15.8 billion and a strong liquidity position (current ratio of 10.63), Summit appears well-positioned to fund its development programs.
UBS’s proprietary overall survival projection model suggests ivonescimab will likely demonstrate meaningful benefits compared to competitor drug Keytruda when mature data becomes available.
The firm expects global Phase 3 trials HARMONi-3 and HARMONi-7 will replicate earlier survival benefits and show positive pivotal progression-free survival and overall survival data in 2026 and 2027.
UBS assigns a 70-75% probability of success for these trials, higher than the 50% probability it believes the market is currently pricing in, and notes ivonescimab’s two-year head start could allow it to lead the NSCLC market.
In other recent news, Summit Therapeutics has been the focus of several analyst reports and developments. The company received a Buy rating initiation from Clear Street, with a price target of $30.00, following a clinical collaboration with Revolution Medicines. This collaboration aims to evaluate ivonescimab in combination with RAS(ON) inhibitors for various RAS-mutant solid tumors. Meanwhile, Leerink Partners initiated coverage with an Underperform rating, setting a $12.00 price target, expressing skepticism about ivonescimab’s market potential despite acknowledging its strengths.
H.C. Wainwright maintained a Buy rating with a $44.00 price target, highlighting ivonescimab’s potential to outperform Merck (NSE:PROR)’s KEYTRUDA in specific settings. Cantor Fitzgerald reiterated an Overweight rating, emphasizing communication challenges and uneven investor awareness. JMP Securities reiterated a Market Outperform rating and a $40.00 price target, following promising results from the Phase 3 HARMONi trial, which showed statistically significant progression-free survival.
The trial’s overall survival data, while not yet statistically significant, showed a positive trend. Summit Therapeutics’ strong financial position, with a cash reserve of $361.3 million, supports its clinical program advancements. Despite uncertainties, analysts see potential in ivonescimab’s impact on treating EGFR mutant and frontline NSCLC.
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