Summit Therapeutics Shares Surge After Licensing Agreement For Cancer Program - Summit Therapeutics (NASDAQ:SMMT)

Akeso Inc announced a collaboration and license agreement with Summit Therapeutics Inc SMMT to out-license its breakthrough bispecific antibody, ivonescimab (PD-1/VEGF, AK112) for development and commercialization in the U.S., Canada, Europe, and Japan.
In addition, the company will co-brand the product in the license territories.
Currently, Akeso is conducting a phase 3 trial of ivonescimab monotherapy versus pembrolizumab monotherapy as the first-line treatment for NSCLC patients with positive PD-L1 expression.
In the Phase 2 study, ivonescimab showed an overall response rate (ORR) in patients with NSCLC who have failed EGFR-TKI's of 68.4% and a median Progression-Free Survival (mPFS) of 8.2 months when combined with combination chemotherapy as compared to historical mPFS of 4.3 months in combination chemotherapy alone, the current standard of care.
Akeso will receive a $500 million upfront payment, and the total potential deal value is up to $5 billion, including regulatory and commercial milestone payments.
Akeso will also receive a low double-digit percentage of royalties on net product sales of ivonescimab.
Akeso will retain development and commercialization rights for the rest of the world, including China.
Price Action: SMMT shares are up 67% at $1.32 on the last check Tuesday.