Summit Therapeutics (SMMT) AI Stock Analysis

• Market Cap: $14.02B
• Dividend Yield: N/A
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.51
• Revenue Growth: N/A
• EPS Growth: -348.63%
• Country: US
• Employees: 159
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.31
• Shares Outstanding: 744,442,570
• 10 Day Avg. Volume: 1,829,780
• 30 Day Avg. Volume: 2,185,059
• PEG Ratio: 0.84
• Price to Book (P/B): 32.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -90.17
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.01K
• Enterprise Value/Ebitda: -16.41
• 1Y Price Target: $42.49
• Price Target Upside: 125.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $18.00 ▼(-4.41% Downside)

The score is held back primarily by weak financial performance—deepening losses and faster cash burn—despite low current leverage. Offsetting this, clinical and regulatory momentum from the latest earnings call (strong Phase III data and planned BLA submission) plus supportive financing/events improve the outlook, while technicals and valuation signals remain broadly neutral.

Positive Factors

Regulatory Approval

Regulatory approval in China for ivonescimab marks a significant milestone, enhancing its market potential and validating its clinical efficacy, which could lead to increased adoption and future revenue streams.

Strong Cash Position

A robust cash position and lack of debt provide financial stability, enabling continued investment in R&D and strategic initiatives without immediate pressure to secure additional funding.

Clinical Trial Success

Success in clinical trials like HARMONi-6 strengthens the company's pipeline credibility, potentially accelerating future approvals and partnerships, which are critical for long-term growth in the biotech sector.

Negative Factors

Lack of Revenue

The absence of revenue generation poses a significant challenge, as it limits the company's ability to self-fund operations and increases reliance on external financing, impacting long-term sustainability.

Increased G&A Expenses

Rising general and administrative expenses can strain financial resources and reduce operational efficiency, potentially diverting funds from critical R&D activities necessary for future growth.

Negative Cash Flow

Persistent negative cash flow highlights operational inefficiencies and the need for strategic changes to improve cash generation, crucial for sustaining long-term operations without excessive external funding.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	704.29K	1.81M	860.00K
Gross Profit	-15.04M	-15.01M	-2.05M	-1.81M	1.81M	860.00K
EBITDA	-921.46M	-212.85M	-69.45M	-73.12M	-85.91M	-50.65M
Net Income	-921.62M	-221.31M	-614.93M	-78.78M	-88.60M	-52.70M
Balance Sheet
Total Assets	261.73M	435.56M	202.95M	664.17M	113.37M	102.50M
Cash, Cash Equivalents and Short-Term Investments	238.88M	412.35M	186.24M	348.61M	71.79M	66.42M
Total Debt	5.43M	7.22M	106.10M	518.76M	2.78M	465.00K
Total Liabilities	69.47M	46.81M	125.26M	537.51M	30.09M	23.05M
Stockholders Equity	192.26M	388.75M	77.69M	126.65M	83.28M	79.45M
Cash Flow
Free Cash Flow	-272.11M	-142.25M	-76.89M	-42.21M	-72.89M	-48.53M
Operating Cash Flow	-271.60M	-142.11M	-76.76M	-41.58M	-72.59M	-48.11M
Investing Cash Flow	393.11M	-205.34M	-587.77M	-624.00K	-306.00K	-421.00K
Financing Cash Flow	20.95M	381.23M	86.51M	620.24M	77.92M	50.55M

Summit Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 18.83 is above the 20-day moving average (MA) of 17.85, above the 50-day MA of 17.90, and below the 200-day MA of 21.81, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 77.21 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
INCY	81 Outperform	$20.79B	17.77	30.39%	―	18.09%	3563.21%
UTHR	79 Outperform	$21.13B	18.60	20.04%	―	13.50%	17.16%
GMAB	76 Outperform	$20.93B	14.17	28.20%	―	24.98%	127.06%
SMMT	53 Neutral	$14.02B	-15.16	-292.49%	―	―	-348.63%
BNTX	53 Neutral	$23.77B	-37.57	-2.94%	―	7.04%	-25.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ASND	46 Neutral	$12.75B	-49.15	―	―	103.32%	47.55%

Summit Therapeutics Corporate Events

Summit Therapeutics Reports Positive Phase III Trial Results

On November 7, 2025, Summit Therapeutics announced that Akeso, its partner, published results from the Phase III HARMONi-A trial conducted in China. The trial demonstrated that ivonescimab combined with platinum-doublet chemotherapy significantly improved overall survival in patients with EGFR-mutated non-small cell lung cancer compared to chemotherapy alone. The study, which was the first Phase III trial for ivonescimab, showed a median overall survival of 16.8 months versus 14.1 months for chemotherapy alone, achieving a hazard ratio of 0.74. This result highlights ivonescimab’s potential to address high unmet medical needs in cancer treatment, offering a favorable risk-benefit profile and demonstrating efficacy where other PD-1 therapies have not succeeded.

The most recent analyst rating on (SMMT) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Summit Therapeutics stock, see the SMMT Stock Forecast page.

Summit Therapeutics Raises $500M in Private Placement

On October 21, 2025, Summit Therapeutics Inc. announced it entered into securities purchase agreements with leading biotech investors, raising approximately $500 million through a private placement of common stock. The funds will be used to advance the clinical development of ivonescimab, a novel investigational bispecific antibody, and for general corporate purposes. The private placement included significant participation from Summit’s executives and Akeso, Inc., highlighting strong insider confidence. The closing of the transaction is expected by October 28, 2025, and Summit plans to file a registration statement with the SEC for the resale of the shares.

The most recent analyst rating on (SMMT) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Summit Therapeutics stock, see the SMMT Stock Forecast page.

Summit Therapeutics Launches New Phase III Study

Summit Therapeutics announced significant progress in its ivonescimab development program, including the initiation of a new Phase III study, HARMONi-GI3, for colorectal cancer and plans for a Biologics License Application submission in late 2025. The company also reported positive results from the HARMONi-6 trial, showing a 40% reduction in disease progression risk in lung cancer patients, and outlined future expansions of its clinical trials, highlighting its strategic positioning in the oncology market.

The most recent analyst rating on (SMMT) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Summit Therapeutics stock, see the SMMT Stock Forecast page.