Biotech stock Summit Therapeutics (SMMT) rocketed, Dow Jones pharmaceutical leader Merck (MRK) skidded lower early Monday, after preliminary analysis showed positive results of a late-stage study treatment of lung cancer tumors.
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The China-based study of Summit’s ivonescimab showed a higher overall response rate compared to patients treated with pembrolizumab. Pembrolizumab is currently marketed by Merck under the brand name Keytruda.
Citi raised its price target on Summit shares to 19, from 13, following the announcement. It rates the stock a buy.
“The company has “unambiguously delivered” on its claims of “unprecedented” data that “decisively beat” Merck’s Keytruda, with a progression free survival hazard ratio of 0.51 for ivonescimab,” the Citi note said, as reported by The Fly. Citi described the treatment as presenting “paradigm and practice-changing potential globally for the treatment of lung cancer and possibly other solid tumors.”
Biotech Stocks: Summit Leaps 30%
Summit stock jetted 30% higher in premarket action Monday. Shares are extended after a breakout from a cup base, poised to break above a February, 2021 high.
On The Dow Jones Industrial Average, Merck shares narrowed their early losses to around 2%. Merck shares have been trying to crawl up out of a two-month consolidation.
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