AstraZeneca to invest $2 billion in Summit Therapeutics for cancer drug tie-up
SMMT•AstraZeneca will invest $2 billion in Summit Therapeutics and collaborate on studies combining their cancer treatments. The investment values Summit shares at $18.36 each, an 18.6% premium to Monday’s close.
1. Investment and partnership
Summit Therapeutics said AstraZeneca would buy preferred shares at an equivalent price of $18.36 per common share, an 18.6% premium to Summit’s Monday closing price of $15.48. The transaction is expected to close by the end of the week.
2. Cancer drug studies
The companies will launch clinical trials combining ivonescimab, a cancer treatment licensed by Summit from China’s Akeso, with AstraZeneca’s cancer treatments. They also signed a preliminary agreement to explore combining ivonescimab with several other AstraZeneca medicines, including antibody-drug conjugates.
