Summit Therapeutics Skips Quarterly Call Amid Swirling Deal Rumors

Summit Therapeutics, a biotech company focused on the development of its PD-1xVEGF antibody ivonescimab, has broken from tradition by forgoing its usual quarterly investor call. This unexpected move comes in the wake of reports suggesting the company is engaged in high-stakes licensing negotiations, potentially with pharmaceutical giant AstraZeneca.

Deal Speculation and Financial Maneuvers

Industry analysts at Evercore ISI have interpreted Summit's silence as a telling sign, stating, "The silence is deafening." The lack of communication from Summit's management team, coupled with a recent Bloomberg report, has fueled speculation about a possible $15 billion deal with AstraZeneca. Summit has reportedly been in discussions with other large pharmaceutical companies as well.

In what appears to be a strategic financial move, Summit has proposed to raise up to $360 million through the sale of new shares. As of June's end, the company held nearly $298 million in cash and cash equivalents. Analysts from Leerink Partners suggest that while this capital raise could temporarily alleviate cash concerns, it "does not preclude the need to partner [ivonescimab]."

Ivonescimab's Clinical Progress and Competitive Landscape

Summit's primary asset, ivonescimab, is currently undergoing several phase 3 trials with mixed results. The Chinese HARMONi-6 trial, evaluating ivonescimab against BeOne Medicines' PD-1 inhibitor Tevimbra in first-line squamous non-small cell lung cancer (NSCLC), has met its primary endpoint of progression-free survival.

However, the global HARMONi trial in EGFR-mutated NSCLC recently disappointed investors. While showing positive progression-free survival, it failed to meet the overall survival goal at the time of readout. Summit noted a positive trend in both Asian and North American patient groups but did not provide detailed data.

The most anticipated upcoming readout is from the China-only HARMONi-2 study, where ivonescimab monotherapy has shown promising results against Merck & Co.'s Keytruda in first-line PD-L1-positive NSCLC. The oncology community eagerly awaits the overall survival data from this high-profile head-to-head trial.

Industry Context and Competitive Moves

Summit's potential deal comes amid significant activity in the bispecific antibody space. Pfizer recently acquired 3SBio's PD-1xVEGF candidate for $1.25 billion upfront, with up to $4.8 billion in potential milestones. Bristol Myers Squibb also entered the fray, agreeing to pay BioNTech $3.5 billion upfront, with up to $7.6 billion in milestones, for a PD-L1xVEGF drug.

These deals underscore the intense competition and high valuations in the immuno-oncology field, particularly for bispecific antibodies targeting PD-1/PD-L1 and VEGF pathways. As the pharmaceutical industry continues to seek innovative cancer treatments, Summit's ivonescimab remains a focal point of interest and speculation.