Summit Secures $200M, Expands Ivonescimab License Territories

Summit Therapeutics Inc. has successfully raised approximately $200 million through an unsolicited proposal from an institutional investor. The investor purchased 22,222,222 shares of Summit's common stock at $9.00 per share, a price higher than the stock's closing price on May 31, 2024. The company plans to utilize the net proceeds to further the clinical development of ivonescimab, a novel anti-cancer therapy, as well as for working capital and general corporate purposes.

In a concurrent development, Summit has expanded its licensing agreement for ivonescimab with Akeso Inc., extending the drug's licensed territories to include Latin America, the Middle East, and Africa. This addition complements the existing licensed territories that encompass the United States, Canada, Japan, and Europe. This strategic move aims to make ivonescimab accessible to more patients worldwide who could benefit from the therapy.

Dr. Maky Zanganeh, CEO and President of Summit, expressed enthusiasm over the strengthened partnership with Akeso, emphasizing the shared mission to advance ivonescimab's development and accessibility. The expanded agreement, valued at up to $70 million, retains core elements of the original collaboration, such as royalty payments and manufacturing provisions. Additionally, this amendment enhances data-sharing benefits across global clinical trials, potentially facilitating regulatory approvals in different regions.

Summit will discuss recent updates on ivonescimab during a conference call scheduled for June 3, 2024, at 8:00 am ET. The call will be accessible via a live webcast on Summit's website, and an archived version will be available later that day.

Ivonescimab, also known as SMT112 in Summit's territories and AK112 in China and Australia, is a bispecific antibody designed to combine the effects of immunotherapy and anti-angiogenesis. It targets PD-1 and VEGF, potentially providing a higher binding affinity when both targets are present in tumor tissue. This design aims to enhance efficacy while improving safety profiles and side effects. Currently, ivonescimab is undergoing multiple Phase III clinical trials, with over 1,600 patients participating globally.

Summit has initiated clinical development for ivonescimab in non-small cell lung cancer (NSCLC), launching two Phase III trials: HARMONi and HARMONi-3. The HARMONi trial evaluates ivonescimab combined with chemotherapy against a placebo in patients with advanced or metastatic NSCLC who have progressed after prior treatment. The HARMONi-3 trial compares ivonescimab combined with chemotherapy to pembrolizumab combined with chemotherapy in first-line metastatic squamous NSCLC patients.

Summit Therapeutics, founded in 2003 and headquartered in Miami, Florida, focuses on the development and commercialization of oncology therapies. The company aims to improve the quality of life and address unmet medical needs through innovative treatments. Summit's shares are listed on the Nasdaq Global Market under the symbol "SMMT."

Ivonescimab remains investigational and is not yet approved by regulatory authorities in Summit's licensed territories. However, it has received marketing authorization in China as of May 2024.