Summit Therapeutics Inc. (SMMT): Biotech's Best Performing Stock in 2024?

Summit Therapeutics Inc. (SMMT) has been one of the standout performers in the biotech sector in 2024, with its stock price surging by 340% since January. The company's impressive run can be attributed to the promising clinical trial results and regulatory milestones achieved by its lead drug candidate, Ivonescimab. This article explores whether SMMT is indeed the best performing biotech stock in 2024 and examines the factors contributing to its remarkable performance.

Summit Therapeutics' pipeline, particularly Ivonescimab, has driven its stock performance. Ivonescimab, a bispecific antibody targeting both PD-1 and VEGF, has shown encouraging results in various cancer indications, including non-small cell lung cancer (NSCLC). In a Phase III trial, Ivonescimab demonstrated a 49% reduction in the risk of disease progression or death compared to Pembrolizumab in first-line PD-L1 positive advanced NSCLC patients in China. Additionally, the U.S. Food and Drug Administration (FDA) granted Fast Track designation for Ivonescimab in combination with platinum-based chemotherapy for the treatment of locally advanced or metastatic NSCLC with EGFR mutation.

Regulatory approvals and clinical trial results have significantly contributed to Summit Therapeutics' success. In May 2024, Summit's partner, Akeso, received marketing authorization in China for ivonescimab based on positive Phase III trial data. This approval marked a significant milestone for Summit, as it validated the drug's efficacy and safety in a major market. Additionally, Summit has received Fast Track designation from the FDA for ivonescimab, allowing for expedited development and review of the drug.

Market dynamics and investor sentiment have also played a crucial role in Summit Therapeutics' outperformance. The company's strategic partnerships, such as its collaboration with Akeso, Inc., have further bolstered confidence in the company's prospects. The biotech sector's overall bullish trend, fueled by strong corporate earnings and technological advancements, has also contributed to SMMT's impressive performance.



However, potential risks and challenges face Summit Therapeutics. Clinical trial setbacks, regulatory hurdles, and competition from established players like Merck (MRK) and Bristol-Myers Squibb (BMY) could impact the company's prospects. While SMMT's market cap of $14 billion is impressive for a clinical-stage biotech, it also exposes the company to higher expectations and potential volatility.

In conclusion, Summit Therapeutics Inc. (SMMT) has been one of the best performing biotech stocks in 2024, driven by the promising pipeline, regulatory approvals, and market dynamics. However, investors should remain aware of the potential risks and challenges facing the company. As the biotech sector continues to evolve, SMMT's ability to maintain its momentum will depend on its ability to navigate the competitive landscape and deliver on its clinical and regulatory milestones.