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Summit Therapeutics (SMMT)
NASDAQ:SMMT
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Summit Therapeutics (SMMT) AI Stock Analysis

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SMMT

Summit Therapeutics

(NASDAQ:SMMT)

Rating:53Neutral
Price Target:
Summit Therapeutics' stock score reflects significant financial challenges, including lack of revenue and ongoing losses, balanced by a strong equity position. Technical indicators show positive momentum, supporting short-term interest. Valuation remains weak due to negative earnings and no dividend. Positive clinical developments from the earnings call bolster the score, highlighting potential for future growth.
Positive Factors
Approval and Perception
The confirmed OS win in China now re-rates confidence, shifts perception, and sets a higher share price floor.
Efficacy and Competitive Edge
Ivonescimab's performance in the HARMONi-2 trial was the first to show superiority over a leading competitor in 1L NSCLC, suggesting a strong competitive advantage.
Market Potential
Ivonescimab's engagement of PD-1 and VEGF has shown superiority over chemotherapy and other treatments, paving the way to capture a significant portion of the ~$50B checkpoint inhibitor market.
Negative Factors
Financial Sustainability
Summit ended the quarter with $297.9 M in cash and cash equivalents and remains in a position where funds are insufficient to sustain operations beyond 3Q26.
Funding and Partnership Needs
Summit lacks the means to rapidly advance ivonescimab in combination regimens without a partnership.
Market Risks
Reiterate UP rating and see downside potential from HARMONi.

Summit Therapeutics (SMMT) vs. SPDR S&P 500 ETF (SPY)

Summit Therapeutics Business Overview & Revenue Model

Company DescriptionSummit Therapeutics (SMMT) is a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of novel antibiotics to combat infections caused by multi-drug resistant bacteria. The company operates in the healthcare sector, with a primary focus on developing new treatments for infectious diseases through its innovative pipeline of antibiotic candidates.
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 Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several significant achievements, particularly the approval of ivonescimab in China and successful clinical trial results, indicating a promising outlook for Summit Therapeutics. Despite some concerns over increased operating expenses and uncertainty in OS benefit, the sentiment remains largely optimistic.
Q1-2025 Updates
Positive Updates
Ivonescimab Approval in China
Ivonescimab received approval from NMPA, the health authority in China, as frontline monotherapy treatment for patients with NSCLC whose tumors have positive PD-L1 expression. This approval is based on positive PFS results from Akeso's HARMONi-2 trial.
Positive Interim Analysis Results
An early interim analysis requested by the NMPA showed a clinically meaningful and strongly positive trend favoring ivonescimab with a hazard ratio of 0.777, implying a potential 22% reduction in the risk of death compared to pembrolizumab.
HARMONi-6 Phase III Trial Success
HARMONi-6 Phase III trial met its primary endpoint of progression-free survival, showing statistically significant and clinically meaningful improvement in PFS for ivonescimab plus chemotherapy against tislelizumab plus chemotherapy in advanced squamous NSCLC.
Expansion of Clinical Trials
Summit has initiated multiple global Phase III studies, including HARMONi-3 and HARMONi-7, evaluating ivonescimab in different settings of NSCLC. Additionally, collaborations with institutions like MD Anderson and Pfizer are expanding research into other cancer types.
Strong Financial Position
Summit ended Q1 2025 with a cash position of approximately $361 million and remains debt-free.
Negative Updates
Operating Expenses Increase
Non-GAAP operating expenses increased to $55.7 million in Q1 2025 from $54.6 million in the previous quarter, primarily due to an increase in G&A expenses.
Uncertainty in OS Benefit
Despite positive interim PFS results, there is uncertainty about the final OS benefit, especially since early analysis was not powered to show statistically significant OS benefit.
Company Guidance
During the Summit Therapeutics Q1 2025 earnings call, key guidance was provided regarding the ongoing development efforts and future prospects for their lead investigational asset, ivonescimab. The call highlighted several metrics related to clinical trials and financial performance. Ivonescimab recently received approval from China's NMPA as a frontline monotherapy for NSCLC with positive PD-L1 expression, backed by positive PFS results from the HARMONi-2 trial, showing a hazard ratio of 0.777, implying a 22% reduction in the risk of death compared to pembrolizumab. Additionally, Akeso’s HARMONi-6 trial met its primary endpoint with a statistically significant PFS improvement for ivonescimab plus chemotherapy. Summit expects top line data in mid-2025 from their global Phase III HARMONi trial in EGFR-mutated NSCLC, marking their first global registrational Phase III trial, which has received Fast Track designation from the U.S. FDA. Financially, Summit ended Q1 2025 with a cash position of approximately $361 million, while their non-GAAP R&D expenses remained stable at $47.1 million compared to the previous quarter. This robust financial standing supports the expansion of their commercial and clinical operations.

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
15
Very Negative
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
45
Neutral
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.00704.29K1.81M860.00K
Gross Profit-15.02M-15.01M-2.05M-1.81M1.81M860.00K
EBITDA-743.22M-212.85M1.00M-73.12M-85.91M-50.65M
Net Income-746.08M-221.31M-614.93M-78.78M-88.60M-52.70M
Balance Sheet
Total Assets324.04M435.56M202.95M664.17M113.37M102.50M
Cash, Cash Equivalents and Short-Term Investments297.87M412.35M186.24M348.61M71.79M66.42M
Total Debt5.55M7.22M106.10M518.76M2.78M465.00K
Total Liabilities64.60M46.81M125.26M537.51M30.09M23.05M
Stockholders Equity259.44M388.75M77.69M126.65M83.28M79.45M
Cash Flow
Free Cash Flow-207.38M-142.25M-76.89M-42.21M-72.89M-48.53M
Operating Cash Flow-206.88M-142.11M-76.76M-41.58M-72.59M-48.11M
Investing Cash Flow285.79M-205.34M-587.77M-624.00K-306.00K-421.00K
Financing Cash Flow190.43M381.23M86.51M620.24M77.92M50.55M

Summit Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price23.70
Price Trends
50DMA
25.45
Negative
100DMA
24.47
Negative
200DMA
21.98
Positive
Market Momentum
MACD
-0.36
Positive
RSI
38.38
Neutral
STOCH
4.39
Positive
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 23.7 is below the 20-day moving average (MA) of 26.68, below the 50-day MA of 25.45, and above the 200-day MA of 21.98, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 38.38 is Neutral, neither overbought nor oversold. The STOCH value of 4.39 is Positive, 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 71 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$15.29B12.3226.08%23.25%64.46%
80
Outperform
$16.52B19.2324.30%18.87%1088.27%
78
Outperform
$13.78B11.9019.30%17.62%19.89%
61
Neutral
$11.76B357.68%55.77%46.81%
53
Neutral
$17.61B-328.30%-338.19%
51
Neutral
$7.85B-0.21-41.41%2.22%22.81%-2.01%
49
Neutral
$24.04B-1.81%7.51%30.53%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SMMT
Summit Therapeutics
23.70
11.10
88.10%
INCY
Incyte
84.61
18.30
27.60%
UTHR
United Therapeutics
304.76
-47.64
-13.52%
ASND
Ascendis Pharma
194.27
59.59
44.25%
GMAB
Genmab
24.87
-2.54
-9.27%
BNTX
BioNTech SE
100.00
12.00
13.64%

Summit Therapeutics Corporate Events

Business Operations and StrategyFinancial Disclosures
Summit Therapeutics Reports Q1 2025 Financial Results
Neutral
May 1, 2025

Summit Therapeutics reported its financial results and operational progress for the first quarter of 2025. The company highlighted significant advancements in its ivonescimab clinical trials, including the HARMONi-6 study conducted by Akeso in China, which showed statistically significant improvements in progression-free survival for NSCLC patients. Ivonescimab received approval in China for a second indication, and the company continues to expand its clinical collaborations globally. Financially, Summit reported increased R&D expenses due to the expansion of clinical studies, resulting in a higher net loss compared to the previous year.

Spark’s Take on SMMT Stock

According to Spark, TipRanks’ AI Analyst, SMMT is a Neutral.

Summit Therapeutics’ overall stock score is 56, reflecting considerable challenges in financial performance with no revenue generation and negative cash flow. However, positive technical indicators and a strong strategic outlook, including collaborations and financial stability, offer some promise. The lack of traditional valuation metrics and uncertainties around trial timelines and strategic reliance on external partnerships are notable concerns.

To see Spark’s full report on SMMT stock, click here.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 02, 2025