TSX runs higher on rate cut expectations
Investing.com - H.C. Wainwright raised its price target on Summit Therapeutics plc (NASDAQ:SMMT) to $50.00 from $44.00 on Wednesday, while maintaining a Buy rating on the stock. The company, currently trading at $26.98 with a market capitalization of $19.8 billion, has delivered an impressive 100% return over the past year, according to InvestingPro data.
The price target increase follows what the firm described as a "momentous" overall survival (OS) win for ivonescimab in EGFR-mutant non-small cell lung cancer (NSCLC), which H.C. Wainwright believes validates that data from China is "real and credible" and confirms that progression-free survival (PFS) benefits translate into overall survival benefits. InvestingPro analysis shows the company maintains a Fair overall financial health score, though it currently operates at a loss.
H.C. Wainwright highlighted that ivonescimab succeeded where Keytruda failed on overall survival metrics, representing what it calls a "definitive win" against the competing treatment. The firm raised its probability of approval for ivonescimab in NSCLC to 85% from 80%.
Summit Therapeutics will present HARMONi data at the World Conference on Lung Cancer in Barcelona, Spain in early September, followed by HARMONi-6 squamous NSCLC data in October at ESMO in Berlin, Germany.
The firm identified the next HARMONi-2 OS analysis by year-end 2025 as the most important near-term catalyst, which it believes will demonstrate that ivonescimab’s PFS advantage versus Keytruda is translating into OS benefit, potentially positioning the drug to compete with Keytruda’s $30 billion annual franchise. With analyst targets ranging from $12.04 to $43.70, investors seeking deeper insights can access the comprehensive Pro Research Report and 11 additional ProTips available on InvestingPro.
In other recent news, Summit Therapeutics has been in the spotlight due to several developments. The company recently reported its second-quarter 2025 earnings, revealing progress in its clinical trials. Summit has started enrolling patients for its HARMONi-3 and HARMONi-7 Phase 3 trials, which are crucial steps in its ongoing research. Additionally, Akeso’s interim results from the HARMONi-A clinical trial showed that ivonescimab combined with chemotherapy achieved a significant survival benefit in non-small cell lung cancer patients.
Analyst activity around Summit Therapeutics has been notable. TD Cowen reiterated its Buy rating, emphasizing the positive outcomes from the HARMONi-A trial. UBS also maintained its Buy rating, highlighting upcoming data updates expected at the World Conference on Lung Cancer. Meanwhile, Piper Sandler initiated coverage with a Neutral rating, expressing concerns about rising investor expectations. JMP Securities reiterated a Market Outperform rating, setting a price target of $40.00. These developments present a mixed but overall optimistic picture for Summit Therapeutics according to various analysts.
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