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Summit Therapeutics Reports Financial Results and Operational Progress for the First Quarter Ended March 31, 2023
First US Patient Treated in Ivonescimab Clinical Trial after Closing Agreement; $500M Raised in Fully-Subscribed Rights Offering MENLO PARK,
About this update from Summit Therapeutics Inc.
[{"type":"text","content":"\nFirst US Patient Treated in Ivonescimab Clinical Trial after Closing Agreement; $500M Raised in Fully-Subscribed Rights Offering\n\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 first quarter ended March 31, 2023.\n\n\nOperational & Corporate Updates\n\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 innovative, 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\nThe Collaboration and License Agreement with Akeso closed on January 17, 2023 after going effective following customary waiting periods.\n\n\n\n\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\n\nIn exchange for these rights, Summit committed to an upfront payment of $500 million, which was 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 in lieu of a cash payment of $25.1 million; the remaining $274.9 million was paid by Summit to Akeso in cash.\n\n\n\nThe second installment of $200 million was paid on March 6, 2023 in cash.\n\n\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\n\nSummit is actively engaged in development activities for SMT112, including holding multiple meetings with the US Food & Drug Administration (FDA) regarding its planned Phase III clinical program and incorporated this feedback accordingly. Summit will start its clinical development in non-small cell lung cancer (NSCLC) in the following i...