Summit Therapeutics (SMMT.US) beats "King of Drugs" with double-antibody drug data, gets Citigroup's preferred stock and raises target price
1min read Zhitong Finance learned that Summit Therapeutics' (SMMT.US) double-antibody drug Ivonescimab (PD-1/VEGF double-antibody) reduced the risk of disease progression or death by 49% compared with Merck's (MRK.US) key cancer drug Keytruda in the treatment of non-small cell lung cancer (NSCLC), according to clinical data previously released. After the data was released, Citigroup praised the data in a new report and recommended Summit Therapeutics as a preferred stock, which also prompted the drug developer's stock to rise 56% on Monday.
The Citigroup analyst said Summit's candidate drug "decisively beat" Keytruda and exceeded "almost all clinical expectations" of the current "gold standard" immunotherapy, indicating it is a reliable emerging blockbuster drug.
Keytruda, a pillar of Merck's revenue, not only opened a new era of tumor immunotherapy but also became the cornerstone of cancer treatment and gradually developed into one of the world's best-selling drugs. Keytruda's global sales in the first half of 2024 reached US$14.2 billion, and it is expected to exceed US$30 billion in the whole year, accounting for 45% of Merck's total revenue. Keytruda's success is attributed to its expanding indications, which have been approved for about 40 indications.
Therefore, Citigroup raised its target price to US$19 from US$13 and said that Summit is expected to continue to rise due to positive data and investors' pursuit of the company. The investment bank currently expects the peak risk-adjusted sales in the United States and Europe to be about US$7.8 billion, higher than its previous estimate of US$5.3 billion.