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Summit Incurs In-Line Q4 Loss, Inks Collaboration Deal With Pfizer

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Summit Therapeutics (SMMT - Free Report) reported fourth-quarter 2024 loss per share of 8 cents, in line with the Zacks Consensus Estimate. In the year-ago period, the company incurred a loss of 5 cents per share.

The reported loss included stock-based compensation expenses. Excluding these expenses, the adjusted loss per share was 7 cents, wider than the year-ago adjusted loss of 4 cents.

As the company lacks any marketed product in its portfolio, it did not record quarterly revenues.

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Post the announcement, shares of Summit fell nearly 15% on Monday as some investors did not appreciate the widening of the quarterly loss compared to the year-ago period.

Year to date, the stock has gained nearly 6%, outperforming the industry’s breakeven growth.

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More on SMMT’s Earnings

Adjusted research and development expenses totaled $47.1 million compared with $22.4 million in the year-ago period. This surge was primarily due to an increase in clinical costs to support the company’s pipeline development.

Adjusted general and administrative expenses amounted to $7.7 million, up 45% year over year.

As of Dec. 31, 2024, Summit had cash, cash equivalents and short-term investments worth $412.3 million compared with $487 million as of Sept. 30, 2024.

Full-Year 2024 Results

Devoid of marketed products, Summit Therapeutics did not record any revenues during the year.

SMMT reported a loss of 31 cents per share for the full year. In the year-ago period, management reported a loss of 99 cents.

SMMT’s Pipeline Updates

Summit has only one pipeline drug in its portfolio, ivonescimab, a first-in-class bispecific antibody that targets two proteins, namely PD-1 and VEGF. It is currently conducting two late-stage studies, HARMONi and HARMONi-3, evaluating ivonescimab in separate settings for metastatic non-small cell lung cancer (NSCLC) indication. The HARMONi study has completed enrolment and data is expected in mid-2025. The HARMONi-3 study is currently enrolling patients.

In a separate press release, Summit announced that it has entered into a clinical trial collaboration with pharma giant Pfizer (PFE - Free Report) to evaluate ivonescimab in combination with several of Pfizer’s antibody-drug conjugates across multiple solid tumor settings. Per the deal terms, Summit will provide ivonescimab for use in the proposed clinical studies, while Pfizer will be responsible for conducting the operations of the studies. The studies under this collaboration are expected to start in mid-2025.

Ivonescimab is being developed in collaboration with China-based Akeso, the drug's original developer. Summit acquired an exclusive license from Akeso in 2022 to develop and market the drug in the United States, Canada, Europe and Japan. The company expanded its licensing deal in June and now covers Latin America, the Middle East and Africa.

In September, Summit reported additional results from the Akeso-sponsored HARMONi-2 study, which evaluated ivonescimab against Merck’s (MRK - Free Report) blockbuster oncology drug Keytruda in patients with locally advanced or metastatic NSCLC whose tumors have positive PD-L1 expression. Data from the study showed that the treatment with the drug cut the risk of disease progression or death by nearly half compared to Merck’s drug.

Based on these results, Summit has started preparations to sponsor its own late-stage study called HARMONi-7 across several countries based on the same design as the HARMONi-2 study. Management reiterated its plans to start the HARMONi-7 study in early 2025.

SMMT’s Zacks Rank

Summit currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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