Sept 28 (Reuters) – Summit Therapeutics said on Monday that British drugmaker AstraZeneca would invest $2 billion in the company and collaborate on a series of studies testing their cancer treatments together.
Summit’s shares rose over 15% in extended trading following the announcement.
Here are some details:
• AstraZeneca will buy preferred shares in Summit at an equivalent price of $18.36 per common share, representing an 18.6% premium to Summit’s Monday closing price of $15.48.
• The investment marks a major vote of confidence in ivonescimab, a next-generation cancer treatment licensed by Summit from China’s Akeso.
• Ivonescimab works by simultaneously blocking PD-1, which helps cancer evade the immune system, and VEGF, which tumors use to grow blood vessels, helping the immune system better find and attack cancer cells.
• As part of the partnership, the two companies will also launch clinical trials combining ivonescimab with AstraZeneca’s cancer treatments.
• They have also signed a preliminary agreement to explore testing ivonescimab with several other AstraZeneca medicines, including its antibody-drug conjugates, a class of treatments that deliver cancer-killing drugs directly to tumor cells.
• The transaction is expected to close by the end of the week.
(Reporting by Kamal Choudhury in Bengaluru)
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