Summit Therapeutics (SMMT) AI Stock Analysis

• Market Cap: $17.00B
• Dividend Yield: N/A
• Average Volume (3M): 3.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.62
• Revenue Growth: N/A
• EPS Growth: 80.00%
• Country: US
• Employees: 159
• Sector: Healthcare
• Sector Strength: 72
• Industry: Biotechnology
• EPS (TTM): -0.31
• Shares Outstanding: 737,679,700
• 10 Day Avg. Volume: 5,360,524
• 30 Day Avg. Volume: 3,359,999
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.50
• Price Target Upside: 44.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Summit Therapeutics' stock score reflects significant financial challenges due to non-existent revenue streams and substantial losses, mitigated slightly by strong balance sheet equity and strategic collaborations. Positive technical indicators show momentum, but valuation concerns and volatility add risk. Continued progress in clinical trials, coupled with substantial cash reserves, provides a cautiously optimistic outlook.

Positive Factors

Market Expansion

Ivonescimab could have a safety edge when comparing multiple indications, which is important for combination strategies for market expansion.

Safety Profile

Ivonescimab shows lower high-grade treatment-related adverse events compared to BNT327, suggesting a better safety profile.

Negative Factors

Regulatory Delays

NMPA has requested additional materials which may include OS data, potentially extending the approval process.

Trial Concerns

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.

Summit Therapeutics Business Overview & Revenue Model

Company Description

Summit 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 Money

Summit 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 24.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMMT, the sentiment is Positive. The current price of 24.61 is above the 20-day moving average (MA) of 20.52, above the 50-day MA of 20.12, and above the 200-day MA of 18.00, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 61.33 is Neutral, neither overbought nor oversold. The STOCH value of 79.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMMT.

Summit Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMAB	80 Outperform	$12.10B	11.05	23.16%	―	30.43%	82.29%
EXEL	79 Outperform	$10.23B	20.39	23.13%	―	18.49%	176.71%
BMRN	78 Outperform	$11.51B	26.74	8.05%	―	17.35%	151.40%
UTHR	78 Outperform	$12.79B	11.59	19.23%	―	23.63%	25.66%
INCY	66 Neutral	$11.17B	214.64	0.76%	―	14.76%	-88.32%
SMMT	54 Neutral	$17.00B	―	-94.89%	―	―	80.00%
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%

Summit Therapeutics Corporate Events

Summit Therapeutics Highlights Q4 Results and FDA Fast Track

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.

Summit Therapeutics Grants Bonuses and Reports Strong Finances

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.