Cantor Fitzgerald Reiterates Overweight Rating on Summit Therapeutics plc (SMMT)

Cantor Fitzgerald analyst Eric Schmidt reiterated an Overweight rating on Summit Therapeutics plc (NASDAQ: SMMT).

The analyst commented, “We and others have noted a change in tone from SMMT management in terms of their receptivity to a 50/50 partnership. Earlier in the year, there was skepticism that such a deal could add shareholder value, but with a competitive "arms race" now in full swing, management appears more inclined to bring on additional resources to accelerate clinical development. We recently completed an investor survey in which we asked 59 respondents, "If SMMT were to sign a 50/50 collaboration around ivonescimab, what size upfront + committed payments ($B) would be needed to move the stock higher?" 56% of the respondents were hedge funds, 32% were long-only HC specialists, 2% were generalists, and 10% were other. The mean response was $9.3B. The median response was $10B. These numbers hold some validity in that SMMT's $21B valuation is entirely supported by ivonescimab. As such, investors would likely want to see committed payments that approximate around half of this value in return for half of the drug. Of course, there are many ways to structure a partnership, so a straight 50/50 deal may not be in the cards, and any future deal terms will need to be scrutinized.”

For an analyst ratings summary and ratings history on Summit Therapeutics plc click here. For more ratings news on Summit Therapeutics plc click here.

Shares of Summit Therapeutics plc closed at $28.67 yesterday.

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