On Friday, Citi reaffirmed its Buy rating and $13.00 price target for Summit Therapeutics plc (NASDAQ:SMMT) stock, highlighting upcoming clinical trial presentations as a key catalyst.
The firm anticipates that the Phase 3 HARMONi-2 trial results for ivonescimab, to be presented between September 7-10, could significantly de-risk the drug's profile in non-small cell lung cancer (NSCLC) treatment.
The optimism is based on the expectation that ivonescimab will demonstrate a statistically significant progression-free survival (PFS) benefit over Keytruda, with a PFS hazard ratio (HR) of at most ~0.7. This prediction aligns with the management commentary from Akeso, Summit's partner in the development of ivonescimab.
Citi suggests that such a PFS HR outcome has historically been associated with a 100% rate of subsequent observed overall survival (OS) benefit in first-line NSCLC immunotherapy trials.
The firm also notes the potential impact of these results on HARMONi-3, another Phase 3 trial being conducted by Summit in the United States and Europe, focusing on first-line squamous NSCLC.
The data from the upcoming trial presentations are expected to not only bolster confidence in ivonescimab's efficacy but also position it as a formidable contender in the NSCLC market, potentially challenging the dominance of Keytruda over time.
Furthermore, Citi has initiated a positive Catalyst Watch in anticipation of the abstract release on August 14, barring any embargo. The firm's outlook is founded on the belief that the forthcoming clinical data could catalyze a reevaluation of Summit Therapeutics' market potential.
In summary, Citi's stance on Summit Therapeutics remains bullish, with significant clinical milestones in the near future that could influence the company's stock trajectory. Investors are likely to keep a close watch on the developments leading up to the World Conference on Lung Cancer presentations in early September.
In other recent news, Summit Therapeutics announced changes in its board of directors and the results of its annual shareholders' meeting. Ujwala Mahatme, a board member, resigned to focus on other professional commitments.
At the annual meeting, all eight director nominees were elected to serve another year, and PricewaterhouseCoopers LLP was appointed as the independent auditor for the fiscal year ending December 31, 2024.
Summit Therapeutics has made significant progress with its drug, ivonescimab. Financial services firms Citi and Stifel have maintained a Buy rating on the company and raised their price targets due to promising data from recent clinical trials. The company ended Q1 2024 with $157 million in cash, which is expected to fund operations through Q1 2025.
Stifel raised the price target for Summit Therapeutics to $14.00, reflecting a more optimistic outlook for ivonescimab. The drug's projected peak sales are now estimated at $3.5 billion. Citi also increased the price target for Summit Therapeutics to $13.00, following promising interim analysis results from a clinical trial involving ivonescimab.
The Phase III clinical trial, HARMONi-2, sponsored by Akeso, Inc., showed that ivonescimab had a statistically significant improvement in progression-free survival in patients with non-small cell lung cancer. Summit plans to present the full data set at a major medical conference later this year.
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