Why Shares of Summit Therapeutics Slumped on Tuesday
Shares of Summit Therapeutics (NASDAQ: SMMT) were down more than 13% on Tuesday. The biotech company's shares have been trending downward since it released first-quarter earnings late last week. On top of that, the market was down in general on Tuesday.
Summit spent big on its collaboration and licensing agreement with Akeso to market ivonescimab, a bispecific antibody being tested in two phase 3 trials to treat non-small cell lung cancer (NSCLC). In its quarterly report, Summit said it lost $542.4 million, compared to a loss of $21.4 million in the same period a year ago, citing $520.9 million of expenses of in-licensing ivonescimab from Akeso.
Summit gained the rights to market the therapy, which it calls SMT-112, in the U.S., Canada, Europe, and Japan while Akeso retains the marketing rights for the therapy elsewhere, including in China. Apparently investors thought the price was too high to pay on a drug that had not yet been approved.
Source Fool.com
