Summit Therapeutics has experienced a significant surge in its market capitalization following positive data regarding its leading drug candidate, ivonescimab, in a recent trial for non-small cell lung cancer (NSCLC). The trial data, presented at the World Conference on Lung Cancer in San Diego, revealed that ivonescimab outperformed Merck's Keytruda, a blockbuster drug with $25 billion in sales last year.
The trial demonstrated a 49% reduction in the risk of tumor progression with ivonescimab compared to Keytruda. Patients on ivonescimab experienced a median of 11.4 months before tumor progression, compared to 5.8 months for those on Keytruda. According to Co-CEO Maky Zanganeh, "The big news was that we could beat Keytruda."
Ivonescimab's Potential
Ivonescimab was licensed from Akeso in December 2022 for $500 million upfront with potential milestone payments of $4.5 billion. Summit Therapeutics holds the rights to market the drug in the U.S., Canada, Europe, Japan, Latin America, Africa, and the Middle East. Currently, there are 20 ongoing clinical trials in China evaluating ivonescimab across various cancer types, including triple-negative breast cancer, colorectal cancer, and head and neck cancer.
Financial Impact and Leadership
The company's stock nearly doubled since September 6, reaching a market capitalization of $17 billion. This surge has elevated Co-CEO Maky Zanganeh to billionaire status, with an estimated net worth of $1.1 billion. Robert Duggan, the other co-CEO and major shareholder, now has an estimated net worth of $14.9 billion.
Future Plans
To secure FDA approval, Summit Therapeutics plans to conduct a global Phase 3 trial, which is expected to take 18 months or more. Stifel analysts do not project any revenue for Summit through 2025. Despite this, Duggan remains optimistic, stating, "The probability of success is very high. That’s not usually the case in biotech."
