Summit Therapeutics Reports Significant Asset Growth, Increased Losses Amid Ongoing Investment in Ivonescimab Clinical Trials

Summit Therapeutics Inc. reported significant financial developments for the nine months ended September 30, 2024, reflecting a strategic focus on advancing its lead candidate, ivonescimab, a bispecific antibody targeting PD-1 and VEGF. The company’s total assets surged to $502.9 million, up from $202.9 million at the end of 2023, driven by a substantial increase in cash and cash equivalents, which rose to $93.8 million from $71.4 million. Short-term investments also saw a notable increase, reaching $393.1 million compared to $114.8 million at the end of 2023.

Despite these asset gains, Summit reported a net loss of $160.1 million for the nine months ended September 30, 2024, a decrease from a net loss of $578.4 million in the same period of 2023. The operating loss for the third quarter was $58.4 million, compared to $20.4 million in the prior year. This increase in losses was attributed to higher operating expenses, which totaled $160.5 million for the nine months, up from $574.3 million in 2023. Research and development expenses rose significantly to $114.4 million, reflecting the company's ongoing investment in clinical trials for ivonescimab.

The company completed a private placement in September 2024, raising approximately $235 million, which is earmarked for the clinical development of ivonescimab and general corporate purposes. This followed a previous private placement in June 2024 that raised around $200 million. Additionally, Summit generated $44.2 million from its at-the-market offering, selling shares at a weighted average price of $24.47.

Summit’s collaboration with Akeso, Inc. for the development and commercialization of ivonescimab has expanded to include territories in Latin America, the Middle East, and Africa. The company made an additional upfront payment of $15 million to Akeso in Q3 2024, with potential milestone payments totaling up to $4.56 billion, including regulatory and commercial milestones.

The company’s stockholders' equity increased significantly to $437.9 million as of September 30, 2024, compared to $77.7 million at the end of 2023. This growth was supported by the issuance of common stock through private placements and at-the-market offerings. However, the accumulated deficit rose to $1.15 billion, indicating ongoing challenges in achieving profitability.

Overall, Summit Therapeutics is navigating a period of substantial investment in its clinical pipeline while managing increased operational costs and losses, with a clear focus on advancing ivonescimab through critical clinical trials.