Jefferies uncovers China approval for Summit Therapeutics, ups target

Jefferies analyst Kelly Shi raised the firm’s price target on Summit Therapeutics (SMMT) to $44 from $31 and keeps a Buy rating on the shares. Ivonescimab gained approval in China for first-line platinum-based chemotherapy in patients with locally advanced or metastatic squamous non-small cell lung cancer, the analyst tells investors in a research note, citing a posting on the National Medical Products Administration website. The firm remains “optimistic” and sees “skewed upside” for Summit shares on the HARMONi-2 study. In light of the HARMONi-6 topline data and H-2 approval, Jefferies increased its probability of success on the first-line NSCLC global trials of HARMONi-7 and HARMONi-3. Today’s China approval news marks Ivonescimab’s second win in NSCLC, a much larger indication than the first approval, the firm says.