Summit Therapeutics closes 36% lower after interim data for cancer drug

Shares of Summit Therapeutics SMMT.O settle 36% lower to $23.47 at close, last up 3.81% to $24.36 in after-market trade

Co says in the submission for cancer drug ivonescimab in China by partner Akeso 9926.HK, the regulators asked for an interim analysis of overall survival

The drug was approved in China based on a trial that studied it against Merck's MRK.N Keytruda in patients with a type of lung cancer

The analysis showed a potential 22% reduced risk of death, with a hazard ratio of 0.777, which is not statistically significant, two analysts said

The simple fact that this still early cut is not statistically significant is triggering a massive sell-off - Evercore ISI

Summit said the interim analysis was conducted at 39% data maturity

Brokerage Truist expects overall survival benefit will reach statistical significance by the final analysis, if not potentially earlier

SMMT shares peaked in September 2024 after results from a study in China showed some lung cancer patients had better survival rates than Keytruda

Stock up 31.5% YTD