EUR/USD likely to find a peak near 1.25: UBS
On Monday, H.C. Wainwright affirmed its Buy rating on shares of Summit Therapeutics plc (NASDAQ:SMMT), with a steady price target of $44.00. The endorsement comes in the wake of recent acquisitions in the biotech industry involving PD-1/L1 x VEGF assets, a category that includes Summit Therapeutics' ivonescimab.
BioNTech SE (NASDAQ:BNTX) made headlines last week with its $800 million cash acquisition of Biotheus, its partner in China. Biotheus has been developing BNT327, a PD-L1 x VEGF inhibitor, which is analogous to Instil Bio's SYN-2510. The latter was in-licensed from ImmuneOnco, also based in China. These moves underscore the industry's interest in this type of cancer treatment.
Despite the sector's active mergers and acquisitions, Summit Therapeutics experienced a notable decline in its stock value, dropping 46% from its 52-week peak following the HARMONi-2 data outcomes. However, H.C. Wainwright perceives this downturn as an opportunity for investors to buy.
The firm's analyst reiterated the positive outlook for Summit Therapeutics, suggesting that the current market conditions present a significant buying opportunity for the biopharmaceutical company's shares. The $44.00 price target is projected for the next 12 months.
Summit Therapeutics is engaged in the development of novel therapies for serious diseases, and the continued confidence from H.C. Wainwright signals a belief in the company's potential and the value of its research in the competitive biotech landscape.
In other recent news, Summit Therapeutics has reported robust Q3 2024 results and significant progression in its clinical trials. The biopharmaceutical company's cash position stands at $487 million, with an additional $235 million raised to support clinical development. The company has completed enrollment for the global HARMONi trial and expects to release top-line data by mid-2025.
The lead investigational drug, ivonescimab, demonstrated a 49% reduction in disease progression risk in non-small cell lung cancer (NSCLC) patients with high PD-L1 expression. The FDA granted a fast track designation for ivonescimab for EGFR-mutated NSCLC, and Summit expanded its HARMONi-3 trial to include patients with non-squamous metastatic NSCLC.
Analysts from JMP Securities and H.C. Wainwright have shown confidence in the company's progress, with JMP Securities rating the company as Market Outperform and H.C. Wainwright maintaining a Buy rating, albeit with a reduced 12-month price target of $44.
InvestingPro Insights
Recent InvestingPro data provides additional context to Summit Therapeutics' (NASDAQ:SMMT) market position and financial health. Despite the recent stock price decline noted in the article, SMMT has shown remarkable resilience over the longer term. The company's YTD price total return stands at an impressive 601.53%, with a one-year return of 848.7%. This aligns with an InvestingPro Tip highlighting SMMT's strong return over the last year.
However, investors should note that SMMT is not currently profitable, with an adjusted operating income of -$181.59 million over the last twelve months. This is reflected in the negative P/E ratio of -73.47, suggesting the company is still in a growth and development phase, which is common for biotech firms focused on novel therapies.
The company's market capitalization of $13.5 billion, coupled with its high Price / Book ratio of 30.83, indicates that investors are placing a premium on SMMT's future potential, likely due to its promising drug pipeline including ivonescimab. This aligns with H.C. Wainwright's bullish stance and $44 price target.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for SMMT, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.