AstraZeneca (AZN.US) invests in Summit (SMMT.US), gaining positive outlooks from JPMorgan and Citi: Cancer drug strategy awaits validation
Analysts from JPMorgan and Citi have welcomed the deal between AstraZeneca and Summit Therapeutics, stating that it aligns with AstraZeneca's cancer strategy.
Zhitong Finance APP has learned that AstraZeneca (AZN.US) announced an investment in U.S. biotechnology company Summit Therapeutics (SMMT.US) and a collaboration on a new anti-cancer drug. Following the news, AstraZeneca rose about 2% in pre-market trading on Tuesday, while SMMT's gains expanded to around 23%. Analysts from JPMorgan and Citi welcomed the deal, saying it is consistent with AstraZeneca's cancer strategy.
According to reports, analysts led by Richard Vosser said in a report that JPMorgan (Overweight rating) believes this investment will enable AstraZeneca to test ivonescimab in its own pipeline, including in combination with its own Sone-V and a broader oncology portfolio, which includes antibody-drug conjugates (ADC). The bank stated that after the investment is completed, AstraZeneca will have rights equivalent to approximately a 12% stake in Summit.
Citi (Buy rating) stated: "This deal aligns with AstraZeneca's efforts—the company is working to make its expanding ADC portfolio a core pillar of its future oncology treatment solutions."
"We believe this deal is a strong external validation of ivonescimab and the PD-1/VEGF bispecific antibody asset class," analyst John Yung wrote in the report.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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