Summit Therapeutics Gains $200M from Leading Biotech Hedge Fund

Summit Therapeutics, a biopharmaceutical company focused on clinical-stage developments, has secured a significant $200 million investment from Baker Brothers Advisors, a leading U.S.-based hedge fund specializing in biotechnology. This substantial influx of capital, at $9 per share, is earmarked to advance the clinical progress of Summit's primary asset, ivonescimab (AK112), a bispecific antibody targeting PD-1/VEGF that is being developed in collaboration with Akeso Biopharma, a Chinese company.

Baker Brothers Advisors, established by Julian and Felix Baker, manages over $20 billion in assets and is known for its impressive track record in the biotech sector. The fund has been instrumental in the growth of several successful biotech firms, including Incyte and BeiGene. The new investment places Summit Therapeutics as the ninth largest holding in the Baker Brothers portfolio, highlighting the fund’s strong belief in the potential of ivonescimab.

The capital injection is timely for Summit Therapeutics, as its partner, Akeso Biopharma, recently published mixed results from ivonescimab trials. The drug demonstrated promising outcomes in a direct comparison with pembrolizumab. However, it did not surpass the combined efficacy of bevacizumab, sintilimab, and chemotherapy in treating non-small cell lung cancer patients with resistance to EGFR-TKI.

In light of these findings, the investment from Baker Brothers and the expanded global licensing agreement between Summit and Kangmei indicate sustained optimism for ivonescimab's future. The drug's dual targeting of PD-1 and VEGF pathways could provide a competitive advantage in the crowded field of immunotherapies.

Summit Therapeutics plans to utilize the funds from Baker Brothers to further the clinical trials of ivonescimab and address general corporate needs. With Baker Brothers' extensive experience and confidence backing them, Summit is well-positioned to continue developing its pipeline and achieving its future objectives.