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Summit Therapeutics (SMMT)
NASDAQ:SMMT
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Summit Therapeutics
(NASDAQ:SMMT)
46Neutral
Positive Factors
Collaboration
Summit Therapeutics PLC announced a new collaboration with Pfizer to explore its vedotin ADCs in combination with ivonescimab in multiple unique solid tumors.
Market Potential
Ivonescimab’s potential market is far broader than lung cancers, tapping into a significant portion of Keytruda's sales.
Therapy Advancement
SMMT’s ivonescimab would be close to being cemented as a paradigm-shifting therapy in NSCLC.
Negative Factors
Data Uncertainty
Investors will face an inconvenient data point with the expectation that HARMONi will not achieve significance on overall survival in the 2L EGFRm Ph3 trial.
Timing Uncertainty
No additional information was provided on the timing of the HARMONi-2 overall survival data.
Trial Outcome Concerns
We quite strongly believe HARMONi will not achieve significance on OS, which is a co-primary endpoint.
Summit Therapeutics (SMMT) vs. S&P 500 (SPY)
Market Cap
$14.99B
Dividend YieldN/A
Average Volume (3M)2.58M
Price to Earnings (P/E)―
Beta (1Y)2.41
Revenue GrowthN/A
EPS Growth80.00%
CountryUS
Employees159
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.31
Shares Outstanding737,679,700
10 Day Avg. Volume1,957,760
30 Day Avg. Volume2,580,149
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-74.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.50Price Target Upside84.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Summit Therapeutics Business Overview & Revenue Model
Company DescriptionSummit Therapeutics Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat infectious diseases in the United States and Latin America. It conducts clinical programs focusing on Clostridioides difficile infection (CDI). The company's lead product candidate is ridinilazole, an orally administered small molecule antibiotic that is in Phase III clinical trials for the treatment of CDI. It also offers SMT-738, for combating multidrug resistant infections primarily carbapenem-resistant Enterobacteriaceae infections; and DDS-04 series for the potential treatment of infections caused by the Enterobacteriaceae. The company was founded in 2003 and is based in Cambridge, Massachusetts.
How the Company Makes MoneySummit Therapeutics generates revenue primarily through collaboration and licensing agreements with other pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties based on the commercial success of the developed products. Additionally, the company may receive government grants and funding from nonprofit organizations that support research and development of new antibiotics. As a clinical-stage company, Summit Therapeutics does not yet generate revenue from product sales, as its products are still in the development phase.
Summit Therapeutics Financial Statement Overview
Summary
Summit Therapeutics faces significant financial hurdles, characterized by non-existent revenue streams and substantial losses. While the balance sheet is bolstered by strong equity levels, cash flow challenges persist, indicating a need for strategic shifts to improve operational cash generation and profitability.Income Statement
Summit Therapeutics shows no revenue generation in recent years, leading to negative profit margins. The gross profit margin and net profit margin remain negative due to the lack of revenue and substantial losses, indicating significant challenges in achieving profitability and growth in the biotech sector.15
Very Negative
Balance Sheet
The company's balance sheet demonstrates a strong equity position relative to liabilities, with a low debt-to-equity ratio and a high equity ratio. However, sustained net losses have eroded overall equity growth, posing a risk to future financial stability.45
Neutral
Cash Flow
Operating cash flows are consistently negative, reflecting ongoing challenges in operational efficiency and cash generation. Despite positive financing cash flows, reliance on external funding could pose risks. Free cash flow trends remain negative, further highlighting cash management issues.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 704.29K | 1.81M | 860.00K | Gross Profit |
| -15.01M | -2.05M | -1.81M | 1.81M | 860.00K | EBIT |
| 313.00K | -89.74M | -72.09M | -86.19M | -53.19M | EBITDA |
| 313.00K | 1.00M | -52.63M | -62.74M | -37.13M | Net Income Common Stockholders |
| -221.31M | -614.93M | -74.38M | -86.15M | -52.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 412.35M | 186.24M | 348.61M | 71.79M | 66.42M | Total Assets |
| 435.56M | 202.95M | 664.17M | 113.37M | 102.50M | Total Debt |
| 7.22M | 106.10M | 518.76M | 2.78M | 465.00K | Net Debt |
| -97.64M | 34.67M | 170.16M | -69.01M | -65.95M | Total Liabilities |
| 46.81M | 125.26M | 537.51M | 30.09M | 23.05M | Stockholders Equity |
| 388.75M | 77.69M | 126.65M | 83.28M | 79.45M |
| Cash Flow | Free Cash Flow | |||
| -142.25M | -76.89M | -42.21M | -72.89M | -48.53M | Operating Cash Flow |
| -142.11M | -76.76M | -41.58M | -72.59M | -48.11M | Investing Cash Flow |
| -205.34M | -587.77M | -624.00K | -306.00K | -421.00K | Financing Cash Flow |
| 381.23M | 86.51M | 620.24M | 77.92M | 50.55M |
Summit Therapeutics Technical Analysis
Negative
19.29
Price Trends
20.47
Negative
19.60
Negative
17.18
Positive
Market Momentum
0.04
Negative
46.84
Neutral
39.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMMT, the sentiment is Negative. The current price of 19.29 is below the 20-day moving average (MA) of 19.60, below the 50-day MA of 20.47, and above the 200-day MA of 17.18, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 39.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMMT.
Summit Therapeutics Risk Analysis
Summit Therapeutics disclosed 70 risk factors in its most recent earnings report. Summit Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Summit Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $22.79B | ― | -3.38% | ― | -27.64% | -172.62% | |
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% | |
48 Neutral | $314.05M | ― | -31.16% | ― | -13.98% | -200.43% | |
48 Neutral | $12.01B | ― | -28.77% | ― | -52.75% | 25.00% | |
46 Neutral | $14.99B | ― | -94.89% | ― | ― | 80.00% | |
46 Neutral | $14.12B | ― | -320.20% | ― | 19.17% | -4.45% | |
39 Underperform | $1.13B | ― | 30.06% | ― | -30.65% | 77.62% |
* Healthcare Sector Average
Performance Comparison
SMMT
Summit Therapeutics
19.29
15.44
401.04%
INSM
Insmed
76.29
49.99
190.08%
NVAX
Novavax
6.41
1.88
41.50%
ARCT
Arcturus Therapeutics
10.59
-21.63
-67.13%
MRNA
Moderna
28.35
-75.26
-72.64%
BNTX
BioNTech SE
91.06
-0.47
-0.51%
Summit Therapeutics Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -12.79% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Summit Therapeutics, marked by significant collaborations, financial stability, and progress in clinical trials. However, some uncertainties around trial timelines and reliance on partnerships were noted.Highlights
Ivonescimab Collaboration with Pfizer
Summit announced a clinical trial collaboration with Pfizer to evaluate Ivonescimab in combination with multiple Pfizer ADCs in solid tumor settings, with trials expected to start mid-2025.
Progress on Global Phase III Trials
Summit completed enrollment in the HARMONi Phase III trial for EGFR mutated non-small cell lung cancer and received Fast Track designation. The HARMONi-3 protocol was expanded to include both squamous and non-squamous histologies, doubling the patient population.
Strong Financial Position
Summit ended 2024 with $412 million in cash and no debt, enabling continued execution of clinical trials.
Ivonescimab Development Milestones
Ivonescimab was featured in 14 publications across 7 tumor types in 2024 and was selected for five oral presentations at major medical conferences.
Global Clinical Trials and Expansions
Summit and Akeso have multiple Phase III trials underway for Ivonescimab, including new indications like pancreatic cancer.
Lowlights
Unclear Timing for Phase III Trial Results
There is uncertainty regarding the exact timing of results for trials like HARMONi-3, which depends on the activation of new sites in multiple regions.
Reliance on External Collaborations
Summit’s strategic plan heavily relies on collaborations, such as with Pfizer and Akeso, for the development and expansion of Ivonescimab.
Company Guidance
During Summit Therapeutics' fourth quarter and year-end 2024 earnings call, the company provided several key metrics and updates regarding their lead investigational asset, Ivonescimab. Notably, they announced a clinical trial collaboration with Pfizer, aiming to evaluate Ivonescimab in combination with multiple Pfizer antibody drug conjugates in unique solid tumor settings, with clinical trials expected to start mid-2025. The company also highlighted the completion of enrollment and Fast Track designation for their global Phase III trial, HARMONi, targeting EGFR mutated advanced non-small cell lung cancer, with top-line data anticipated in mid-2025. Additionally, the HARMONi-3 trial was expanded to include a broader patient population, now addressing a group two to three times larger than initially planned. Financially, Summit ended 2024 with approximately $412 million in cash and zero debt, positioning them well to execute their ongoing and planned clinical trials.Summit Therapeutics Corporate Events
Business Operations and StrategyFinancial Disclosures
Summit Therapeutics Highlights Q4 Results and FDA Fast Track
Positive
Feb 24, 2025
Summit Therapeutics reported its 2024 fourth-quarter financial results, highlighting advances in its clinical trials for ivonescimab, including a collaboration with Pfizer to explore novel treatments in solid tumor settings. The company also announced the completion of enrollment for its HARMONi trial and received Fast Track designation from the FDA, positioning itself as a key player in innovative oncology treatments. Financially, Summit recorded a significant decrease in operating expenses primarily due to reduced R&D costs, although it saw an increase in R&D spending linked to expanded clinical trials.
Executive/Board ChangesFinancial Disclosures
Summit Therapeutics Grants Bonuses and Reports Strong Finances
Positive
Jan 24, 2025
On January 22, 2025, Summit Therapeutics’ Board approved cash bonus awards for Dr. Mahkam Zanganeh, CEO, and Manmeet Soni, CFO, for their performance in the 2024 fiscal year, despite no bonuses being issued in 2023. The Board also increased their annual base salaries starting February 1, 2025. As of December 31, 2024, the company’s preliminary unaudited cash and investment balance was approximately $412 million, including the repayment of a $31.8 million related party loan, indicating a robust financial position.
Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Summit Therapeutics Highlights Success at Healthcare Conference
Positive
Jan 13, 2025
Summit Therapeutics announced its participation in the 43rd Annual J.P. Morgan Healthcare Conference, highlighting significant milestones in 2024, including a 584% stock performance increase and over $435 million in financing. The company has made significant progress with ivonescimab, a cancer therapy currently in nine Phase III trials, showcasing a decisive improvement against pembrolizumab in NSCLC patients, and achieving regulatory approval in China.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.