AstraZeneca Invests £1.5 Billion in US Cancer Drug Developer Summit Therapeutics
The pharmaceutical giant expands its US presence with a significant stake in Summit Therapeutics to advance cancer treatment research.
AstraZeneca has acquired a 12 percent stake in US pharmaceutical firm Summit Therapeutics, investing £1.5 billion as part of a joint venture aimed at accelerating cancer treatment research. This move signifies an increased investment in the United States by the British drug manufacturer.
The partnership will focus on speeding up the development of Summit's experimental drug, ivonescimab. This drug targets specific proteins to attack cancer cells and inhibit their growth. The collaboration will also explore combining ivonescimab with AstraZeneca's existing treatments, particularly its sonesitatug vedotin (Sone-Ve) drug.
Clinical trials for the combination therapy in gastrointestinal cancer are set to commence shortly. This strategic investment aligns with AstraZeneca's broader commitment to the US market, where CEO Pascal Soriot has pledged to invest $50 billion by 2030, anticipating that half of the company's revenues will originate from the country by that year.
Under the terms of the agreement, both companies will contribute their respective medicines for the planned combination trials and share the associated costs. Each firm will retain the development and commercial rights to its own medication. Analysts view the stake acquisition as a measured approach, offering AstraZeneca a strategic position for potential future acquisitions without the immediate risk of a full buyout.
Susan Galbraith, executive vice president at AstraZeneca, stated that the combination of ivonescimab with AstraZeneca's antibody drug conjugates portfolio could lead to new treatment regimens that significantly improve outcomes for cancer patients. Dr. Maky Zanganeh, president and co-chief executive of Summit Therapeutics, described the collaboration as an "exciting new chapter" in the advancement of ivonescimab.
Following the announcement, Summit Therapeutics saw its stock rise by 5.5 percent in New York, while AstraZeneca's shares closed down 0.5 percent, despite reaching a two-month high earlier in the trading session.