Summit Therapeutics Falls Almost 20% as it Returns Part of Last Week's 280%+ Rally
$Summit Therapeutics(SMMT.US$ fell nearly 20% Tuesday as the biotech firm's stock continued to give back part of a 280%+ rally that it saw last Thursday on positive study results for its candidate cancer drug ivonescimab.
SMMT sank to as low as $7.26 intraday, down 17.9% on the session and 35.5% from its $11.25 intraday peak last Thursday.
Summit had rallied 284% intraday last Thursday, rising to as high as $11.25 from just a $2.93 close the day before.
The stock soared on word that its candidate drug ivonescimab had outperformed hot rival treatment Keytruda from $Merck & Co(MRK.US$.
Ivonescimab did better than Keytruda in a Phase 3 trial of treating locally advanced or metastatic non-small-cell lung cancer.
However, Summit stock has been returning some of last Thursday's big gains despite announcing two seemingly positive developments on Tuesday.
First, the company said thatit accepted an unnamed institutional investor's unsolicited offer to buy some 22.2 million shares of stock at $9 a share – a 4.7% premium over SMMT's May 31 closing. The deal will provide Summit with $200 million of gross proceeds.
SMMT also said Tuesday that it had expanded its licensing of ivonescimab from $AKESO(09926.HK$ – a Hong Kong-listed biotech that originally developed the drug – to include Latin America, the Middle East and Africa. That adds to Summit's existing rights to sell ivonescimab in the United States, Canada, Japan and Europe.
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MayFlower : It was predictable..
Midnite52 : yep