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Summit Therapeutics Reports Financial Results and Operational Progress for the Fourth Quarter and Year Ended December 31, 2022
Earnings Call with Management Team Scheduled for Today at 9:00am EST MENLO PARK, Calif.--(BUSINESS WIRE)-- Summit Therapeutics Inc. (NASDAQ: SMMT) ("Summit,"
About this update from Summit Therapeutics Inc.
[{"type":"text","content":"\nEarnings Call with Management Team Scheduled for Today at 9:00am EST\n\n MENLO PARK, Calif.--(BUSINESS WIRE)--\nSummit Therapeutics Inc. (NASDAQ: SMMT) (\"Summit,\" \"we,\" or the \"Company\") today reports its financial results and provides an update on operational progress for the fourth quarter and year ended December 31, 2022.\n\nOperational & Corporate Updates\n\n\nOur Collaboration and License Agreement with Akeso Inc. (\"Akeso\") for ivonescimab:\n\n\nOn December 5, 2022, Summit and Akeso entered into a Collaboration and License Agreement for ivonescimab, Akeso's breakthrough, potentially first-in-class bispecific antibody combining the effects of immunotherapy via a blockade of PD-1 with the anti-angiogenesis effects associated with blocking VEGF into a single molecule.\n\n\nSummit received the rights to develop and commercialize ivonescimab (SMT112) in the United States, Canada, Europe, and Japan. Akeso retained development and commercialization rights for the rest of the world, including China.\n\n\nIn exchange for these rights, Summit committed to an upfront payment of $500 million to be paid in two installments.\n\n\nThe first installment worth $300 million was paid in January in conjunction with the closing of the transaction. Of the $300 million paid to Akeso by Summit, Akeso opted, in accordance with the Collaboration and License Agreement, to receive 10 million shares of Summit common stock valued at $25.1 million; the remaining $274.9 million was paid by Summit to Akeso in cash.\n\n\nThe second installment of $200 million was paid on March 6, 2023 in cash.\n\n\n\n\nGoing forward, Akeso will be eligible to receive regulatory and commercial milestones of up to $4.5 billion. In addition, Akeso will receive low double-digit royalties on net sales in the Summit territories.\n\n\nSummit is initiating development activities for SMT112 and will do so first in non-small cell lung cancer (NSCLC) indications. Summit intends to start treating patients in clinical studies during the second quarter of 2023.\n\n\nSummit is in communication with and has planned multiple meetings with health authorities, including the US Food & Drug Administration (\"FDA\") in order to align on our approach for multiple potential late-stage trials for SMT112.\n\n\nThe deal closed on January 17, 2023 following customary waiting periods. At this...