Bernstein SocGen Group Starts Summit Therapeutics plc (SMMT) at Underperform
Bernstein SocGen Group analyst Jeffrey Walch initiates coverage on Summit Therapeutics plc (NASDAQ: SMMT) with a Underperform rating and a price target of $7.70.
The analyst comments "We initiate with an Underperform rating on SMMT and recommend investors exit positions or, if possible, initiate short positions. In our opinion the long-term outlook for the company is not on solid footing. Both SMMT and BioNTech have aggressively jumped into the misguided (based on our analysis) PD-L/VEGF bispecific experiment. This questionable strategy could prove even more costly for SMMT than BioNTech because they have put all their chips in on ivonescimab. Unlike BNTX, SMMT has no on-market drugs, revenue or additional late-stage assets. We expect the key end-points for all three of SMMT’s ongoing Ph3 trials to read-out non-statistically significant: overall survival for HARMONi-3/-7 in NSCLC and PFS for HARMONi-GI3 in MSS colorectal cancer. There is an expansive history of failed registrational trials investigating the combination of anti-PD-1+ anti VEGF across tumor types. We discount the narrative that “this time it’s different” for anti-PD-1+VEGF as lacking in supportive clinical data. Instead, we initiate with an Underperform rating because the science and clinical data tells us that history will repeat itself: encouraging PFS HR that degrades to negative OS and a failed clinical trial."
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Shares of Summit Therapeutics plc closed at $17.89 yesterday.