Investors Turn Attention to Promising Cancer Drug Developers

A recent report highlights significant stock performance for cancer drug developers Summit Therapeutics and Instil Bio, with gains over 700%. As both firms work on potential treatments that may outperform established drugs, investor interest still carries risks.

Date: 25-09-2024

AI Rating: 7

The report indicates impressive stock performances for Summit Therapeutics and Instil Bio, both notable cancer drug developers. From the end of 2023 to September 23, their shares surged over 700%, directly correlating with the potential success of their new drug candidates aimed at treating cancer.

Notably, Summit Therapeutics' stock surged by over 1,000% at one point, attributed to their therapy, ivonescimab, demonstrating superior efficacy in early trials compared to Keytruda, a leading cancer treatment by Merck which generated significant sales of $25 billion last year.

Further developments include the ongoing HARMONi trials. The interim results from HARMONi-2 showed a 49% reduction in disease worsening for patients treated with ivonescimab compared to those receiving Keytruda, indicating strong potential for future success. A favorable outcome from the HARMONi-3 trial could position ivonescimab as a new industry standard, with projected annual sales exceeding $10 billion.

Meanwhile, Instil Bio's SYN-2510, a similar therapy, has also experienced stock price increases of 814% in 2024 despite not having head-to-head efficacy data against Keytruda. This highlights the investor confidence stemming from both companies' novel treatment approaches.

Overall, while the trajectory looks optimistic for both firms, the success heavily relies on the results of their clinical trials. The substantial market valuations—$15.9 billion for Summit and $451 million for Instil—require cautious consideration due to the high risk associated with pre-commercial-stage biotech companies. Investors should remain aware of the potential volatility linked to clinical trial outcomes, as negative results could markedly impact stock prices.

Stocks: NASDAQ:SMMT NASDAQ:TIL NYSE:MRK