Optimistic Outlook for Summit Therapeutics: Buy Rating Affirmed Despite OS Miss in HARMONi Trial

Summit Therapeutics (SMMT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Yigal Nochomovitz from Citi maintained a Buy rating on the stock and has a $35.00 price target.

Yigal Nochomovitz has given his Buy rating due to a combination of factors surrounding Summit Therapeutics’ potential in the oncology space. Despite a recent narrow miss on overall survival (OS) in the HARMONi trial, the treatment effect remains promising, and there is potential for statistical significance with more data. Nochomovitz highlights the geographic consistency between China and ex-China as a confidence driver for ivonescimab, the company’s lead asset.
Furthermore, Nochomovitz points out that Summit Therapeutics has strong arguments for approval in the 2L EGFRm NSCLC setting, even with the OS miss, as previous trials in this area have also missed on both progression-free survival (PFS) and OS. Ivonescimab’s statistically significant PFS and its favorable toxicity profile compared to existing treatments further bolster the case. The long-term thesis remains intact, with potential practice-changing data expected from future trials in the 1L NSCLC setting. These factors collectively contribute to the optimistic outlook and the Buy rating.