Why is Summit Therapeutics share price up today by 22%?

Summit Therapeutics (NASDAQ:SMMT) share price leaped 22% in pre-market trading on Tuesday. British drugmaker AstraZeneca (NASDAQ:AZN) has decided to make a $2 billion strategic equity investment in the biopharma firm. Both the companies will work together on a series of studies related to cancer treatment.

AstraZeneca investment in Summit Therapeutics

The AstraZeneca investment will be carried out through newly issued convertible preferred shares at a common stock equivalent price of $18.36 per share. British drugmaker will get rights equivalent to approximately 12% of outstanding common stock of Summit, as per disclosed information.


The announced about the agreement was made after the close of regular trading on Monday. The biotechnology company, Summit, shares rose in extended-hours and pre-market trading.

AstraZeneca and Summit clinical collaboration agreement

AstraZeneca and Summit have also entered into a clinical collaboration agreement linked to oncology treatment. Under the agreement, they will evaluate Summit's ivonescimab in combination with AstraZeneca's sonesitatug vedotin, or Sone-Ve, in gastrointestinal cancers.

A memorandum of understanding has also been signed between AstraZeneca and Summit to explore additional combination studies, which involves ivonescimab and other AstraZeneca antibody-drug conjugates. The financial terms or timelines have not been provided by the companies till now for the additional potential studies.

A US Food and Drug Administration decision is awaited by Summit on its Biologics License Application for ivonescimab in EGFR-mutated non-small cell lung cancer. The decision date for FDA's Prescription Drug User Fee Act has been scheduled for November 14, 2026, as per the available information.