Cambridge, Massachusetts-based biotech Summit Therapeutics (NASDAQ:SMMT) jumped ~38% pre-market Tuesday after announcing a collaboration and license agreement with Hong Kong-listed biopharma Akeso for ivonescimab, a bispecific antibody targeted at various forms of cancer.
Ivonescimab is currently undergoing multiple studies, including a Phase 3 trial versus pembrolizumab as a single agent for first-line treatment of non-small cell lung cancer with positive PD-L1 expression.
China has issued breakthrough therapy designations for ivonescimab covering three cancer indications.
Per the terms, Akeso will out-license ivonescimab to Summit (SMMT) for the development and commercialization in the U.S., Canada, Europe, and Japan in a deal worth up to $5B in total.
In addition to the low-double-digit percentage of royalties on net product sales and the opportunity co-brand the product in the licensed territories, Akeso will receive $500M upfront payments from Summit (SMMT).
The company will also appoint one member to Summit’s (SMMT) board and retain development and commercialization rights for ivonescimab in the remaining markets, including China.
Ahead of the deal, Summit (SMMT) shares surged after Chief Executive Robert Duggan purchased $92M worth of company shares in August.