Summit Therapeutics initiated with an Underperform at Leerink

Leerink initiated coverage of Summit Therapeutics (SMMT) with an Underperform rating and $12 price target Ivonescimab, Summit Therapeutics’ VEGF-A/PD-1 bispecific, is a strong product and Summit leadership deserves credit for licensing ex-China rights to the bispecific from Akeso long before the clinical outcomes were clearly compelling, the firm says. However, Leerink does not believe Ivonescimab is the next Keytruda. For the firm, consensus estimates assume an unrealistic share of the current anti-PD(L)1 total addressable market, given the intense and heterogenous competitive landscape, and compared to the PD-(L)1 era, higher threshold for clinical success, regulatory approval, and uptake.