Akeso Shares Jump After AstraZeneca's $2 Billion Summit Investment

Shares of Akeso jumped after AstraZeneca moved to advance the Chinese biotech firm’s flagship cancer drug, adding to signs of growing international interest in China’s biotech innovation.

AstraZeneca backs Summit Therapeutics

AstraZeneca announced on Tuesday a US$2 billion equity investment in Florida-headquartered Summit Therapeutics.

Summit holds the exclusive rights to develop and commercialise Akeso’s immunotherapy drug ivonescimab outside China.

The companies said Summit and AstraZeneca would “imminently” begin clinical trials to evaluate ivonescimab in combination with AstraZeneca’s antibody-drug conjugates.

Those antibody-drug conjugates include gastrointestinal cancer drug sonesitatug vedotin, according to the companies.

Global momentum for Chinese biotech

The move came as a new deal from US giant Merck further underscored the sector’s global momentum amid easing fears of US curbs.

Deals involving novel cancer therapies and weight-loss drugs have reinforced the growing global appeal of Chinese biotech innovation.

The developments also placed Akeso’s ivonescimab at the centre of renewed investor attention, because AstraZeneca’s investment advances work around the drug through Summit’s rights outside China.

Cui Cui, head of Asia healthcare research at Jefferies, said in a note on Tuesday that the partnership “further strengthened” the investment bank’s conviction on ivonescimab.

Cui said Jefferies believed ivonescimab could become a foundational immunotherapy treatment when used alongside other medicines.

The AstraZeneca, Merck and Novo-linked activity highlighted in the source reflects how Chinese biotech assets are drawing attention across areas including cancer therapies and weight-loss drugs.

Source: South China Morning Post