Stifel, a financial services firm, raised its price target for Summit Therapeutics plc (NASDAQ: NASDAQ:SMMT) to $40.00, up from the previous $25.00, while maintaining a Buy rating on the stock.
The adjustment comes in the wake of recent clinical trial data and presentations at key medical conferences.
The firm's analyst highlighted the significance of Summit's ivonescimab (PD-1/VEGF) results from the HARMONi-2 trial, which was directly compared to pembrolizumab. Despite the focus on this head-to-head trial, the analyst emphasized that additional data presented at the World Conference on Lung Cancer 2024 (WCLC24) and the European Society for Medical Oncology 2024 (ESMO24) should not be ignored.
Summit's research into the PD-[L]1/VEGF class across various solid tumor types has shown potential not only to replace existing PD-[L]1 inhibitors like pembrolizumab but also to significantly expand the addressable market. The analyst believes that by broadening patient eligibility and reaching tumor types where PD-[L]1 treatments have previously failed, Summit could capture a larger market share.
The updated analysis by Stifel includes the potential for Summit's treatments in triple-negative breast cancer (TNBC) and adjusts the probability of success (POS) for all indications based on the breadth of data presented at ESMO24. This comprehensive assessment led to the increased price target for Summit Therapeutics' shares.
In other recent news, Summit Therapeutics has been the focus of several financial firms following promising clinical trial data. H.C. Wainwright, Citi, and Stifel have all raised their price targets for the company, maintaining Buy ratings.
The positive adjustments come in light of the recent Phase 2 clinical trial data presented by Summit Therapeutics, showcasing the potential of their drug ivonescimab in treating certain types of cancer. The HARMONi-2 study data revealed a 0.51 progression-free survival hazard ratio when ivonescimab was compared to Keytruda, suggesting that ivonescimab may offer an advantage over PD-[L]1 antibodies.
Summit Therapeutics' management anticipates a comprehensive development plan that projects peak revenues by the early 2030s. Analysts from H.C. Wainwright and Citi have highlighted ivonescimab's potential in areas where Merck & Co.'s KEYTRUDA has shown ineffectiveness, following Merck's termination of two clinical trials involving KEYTRUDA.
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