Shares of biotech firm Summit Therapeutics soared more than tripled on Thursday after the company announced positive results for its drug candidate ivonescimab in a phase 3 trial for the treatment of lung cancer. The stock surge of 272% resulted in a significant increase in the wealth of pharma billionaire Robert Duggan, the chairman and co-CEO of Summit Therapeutics, bringing his fortune to $7.5 billion in a single day, according to Forbes estimates.
Duggan, who owns about 78% of Summit’s stock, expressed his satisfaction with the stock bump, joking that it was “not bad for one day’s work” and reflecting on his humble beginnings. His co-CEO Maky Zanganeh, who owns approximately 5% of Summit’s shares, saw his net worth increase to nearly $500 million. This increase in wealth was attributed to the company’s positive trial results.
The positive results were announced in a statement issued by Summit, indicating that ivonescimab had outperformed Merck’s Keytruda, a widely used cancer immunotherapy drug, for patients with locally advanced or metastatic non small-cell lung cancer. This was a significant achievement considering that Keytruda is the world’s best-selling medicine, generating sales of $25 billion last year. The stock of Summit Therapeutics closed at $10.92 on Thursday, up from $2.93 the day before.
Zanganeh speculated on the reasons behind the stock surge, suggesting that the unprecedented success in beating Keytruda was the likely cause. Summit had previously licensed the experimental cancer drug from Akeso for $500 million upfront, with potential additional payments of $4.5 billion based on regulatory and commercial milestones. This drug combines cancer immunotherapy and anti-angiogenesis effects in one molecule.
The primary goal of the phase 3 trial is to measure progression-free survival of patients taking ivonescimab compared to Keytruda. The interim analysis conducted by an independent Data Monitoring Committee indicated a statistically significant and clinically meaningful improvement with the Summit drug candidate, although specific details were not provided. The full data from the trial is expected to be presented at a medical conference later this year.
Duggan, who had previously achieved success with the company Pharmacyclics and the drug Imbruvica, acquired a majority stake in Summit Therapeutics in 2020 and became CEO, betting on the company’s success in oncology. While the interim results for ivonescimab are promising, there is no guarantee that the drug candidate will continue to outperform Keytruda. Further data and analysis will be necessary to determine the potential success of the drug in treating lung cancer patients.
