Summit Therapeutics Inc. (SMMT)
UndervaluedFundamental
21
Price
$16.91
Market Cap
$13.07B
Part 1 · What the company is worth
Overview
Summit Therapeutics is a clinical-stage biopharmaceutical company with no approved products and no product revenue yet. Its business is built around ivonescimab, a bispecific antibody that blocks both PD-1 and VEGF-A, licensed from China's Akeso for the United States, Canada, Europe, Japan, Latin America, the Middle East and Africa. The lead program targets non-small-cell lung cancer, where Summit has reported Phase III results and submitted a biologics license application to the FDA.
How it makes money
Summit currently has no commercial revenue: spending goes into clinical trials, regulatory filings and manufacturing scale-up, funded from cash reserves and equity raises. If ivonescimab is approved, Summit would sell it directly in its licensed territories and share profits and losses with Akeso under pre-agreed terms, while Akeso keeps rights elsewhere, including China. Value today rests entirely on trial data and regulatory outcomes, not on a functioning sales business.
What drives demand
DefensiveShould ivonescimab reach the market, demand for a cancer treatment does not follow the economic cycle: patients need it regardless of growth or recession. But this driver is still theoretical — today the variable that matters is not patient demand but whether the data and the regulators allow a launch at all.
Key risks
- Ongoing losses and need for capital — Summit has incurred significant losses since inception and expects to keep doing so; without an approved, selling product it must keep raising cash through equity or debt to fund trials and operations.
- Regulatory approval is not guaranteed — Positive trial results do not assure FDA or other regulators will approve ivonescimab; additional required studies, safety findings or a change in regulatory standards could delay or block approval.
- Commercial success is separate from approval — Even an approved drug can fail commercially if it does not outcompete existing treatments on efficacy, safety, price or reimbursement, or if larger rivals respond with their own combinations.
- Dependence on the Akeso license — Summit's core asset is licensed, not developed in-house; a dispute over the agreement, an IP challenge, or a problem with Akeso's own data or manufacturing would directly hit Summit's only late-stage program.
- Cross-border and China-related exposure — Key clinical and manufacturing data originate through a Chinese partner, and the company flags exposure to Chinese regulation and broader geopolitical risk as a factor that could affect its programs.
The case for
Buyers argue that ivonescimab's Phase III results in lung cancer, including a survival benefit and a favorable comparison to existing PD-1 therapy, point to a genuinely differentiated mechanism worth a multi-billion-dollar peak market even before Summit's other licensed indications are considered.
The case against
Sellers fear that Summit is a single-asset, pre-revenue biotech whose entire value depends on an FDA decision it does not control, funded by cash that will need repeated top-ups, with commercial execution against Merck's entrenched Keytruda franchise still completely unproven.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
0
Fiscal year ended 12/31/2025
Net Income
$-1.08B
Fiscal year ended 12/31/2025
Free Cash Flow
$-324M
Total Equity
$659M
Total Liabilities
$92M
Current Ratio
6.96
Interest Coverage
-
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
No income data available
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$28.52
Current Price
$16.91
Margin of Safety
+40.7%
Fair Value Range
$27.10 - $29.95
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-163.9%
P/B Ratio
21.41
P/FCF
-
Gross Margin
-
ROIC
-
Profitability Radar
Value Creation (Economic Moat)
ROIC
-
WACC
8.0%
ROIC − WACC
-
Fundamental Analysis Criteria
Passed (5)
- Price CAGR 6.75%
- Debt/Equity ratio
- Current Ratio
- Low reliance on intangibles
- Analyst Consensus 67% Buy
Failed (9)
- EPS shows upward trend
- P/B Ratio 21.41
- Positive Free Cash Flow
- Return on Tangible Assets
- DCF valuation (Unknown)
- ROE -168.9%
- Earnings Surprise avg -126.0%
- Share Dilution 5.0%
- Piotroski F-Score 1/9
Unavailable (13)
- ROIC NaN%
- Gross Margin NaN%
- P/FCF NaN
- Dividend Payout NaN%
- Operating Margin NaN%
- CapEx intensity
- Interest Coverage
- Debt/EBITDA
- Price below Graham Number
- Revenue Growth 5Y (Finnhub)
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
- Net Margin Trend (invalid data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Robert W. Duggan | Co-CEO & Executive Chairman | 80 |
| Dr. Mahkam Zanganeh D.D.S., M.B.A. | Co-CEO, President & Director | 55 |
| Mr. Manmeet Singh Soni CPA | COO, CFO & Director | 47 |
| Prof. Kay Elizabeth Davies DBE, FRS CBE | Co-Founder, Chairman of Scientific Advisory Board and Scientific Advisor | 74 |
| Mr. Bhaskar Anand | Chief Accounting Officer & Head of Finance | 47 |
| Mr. Nathan LiaBraaten | Senior Director of Investor Relations | - |
| Dr. Elaine Carla Stracker J.D., Ph.D. | Chief Legal Officer | 64 |
| Mr. Dave Gancarz CPA | Chief Business & Strategy Officer | - |
| Dr. Wang Clow Fong ScD | Chief Biometrics Officer | 67 |
| Dr. Urte Gayko Ph.D. | Chief Regulatory, Quality & Pharmacovigilance Officer | 54 |
Audit Risk
3
Board Risk
10
Compensation Risk
10
Shareholder Rights Risk
5
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-23
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-23
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-29
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for SMMT, sourced from Markets Gazette.
- 2d agoPOSITIVESummit Therapeutics balza del 20% dopo l'investimento da $2 billion di AstraZeneca
Summit Therapeutics shares surged over 20% in pre-market trading following a significant $2 billion investment and collaboration agreement with AstraZeneca. The deal, announced late Monday, involves AstraZeneca acquiring preferred shares in Summit at a premium of 18.6% over its previous closing price, equivalent to $18.36 per ordinary share. This strategic partnership focuses on joint clinical studies for their oncology treatments. The investment underscores AstraZeneca's confidence in Summit's pipeline and is expected to accelerate drug development, potentially leading to substantial returns for Summit shareholders and validating the company's research efforts.
- 3d agoPOSITIVESummit Therapeutics Jumps on $2 Billion AstraZeneca Investment
Summit Therapeutics Inc. experienced a significant surge in its stock price following the announcement of a $2 billion strategic equity investment from AstraZeneca Plc. This substantial capital injection is earmarked for the joint development of novel cancer drugs. The partnership signifies a strong vote of confidence from a major pharmaceutical player in Summit's pipeline and research capabilities. For investors, this deal not only provides crucial funding but also validates Summit's therapeutic approach, potentially accelerating drug development timelines and enhancing future revenue prospects.
- 4/8/2026POSITIVESummit Therapeutics Has Scarcity Value In A Crowded Drug Race: Analyst
Stifel has initiated coverage on Summit Therapeutics (SMMT) with a 'Buy' rating and a $45 price target. The firm highlights the significant market potential of ivonescimab, estimating its addressable market at $200 billion. This valuation suggests strong future growth prospects for the company's lead drug candidate. For investors, this initiation of coverage with a positive outlook and a substantial price target indicates analyst confidence in Summit Therapeutics' pipeline and its ability to capture a significant share of the oncology drug market.
- 2/23/2026NEUTRALSummit (SMMT) Q4 2025 Earnings Call Transcript
The Markets Gazette reports the release of the Q4 2025 earnings call transcript for Summit Therapeutics (SMMT). This document provides a detailed record of the discussion between the biopharmaceutical company's management and financial analysts. While the release itself is a routine event, its content is of paramount importance to investors. Analyzing management's commentary, forward-looking guidance, and answers to analyst questions will offer crucial insights into financial performance, drug pipeline progress, and corporate strategy. In the absence of the specific earnings data (EPS, revenue), the news is purely informational and does not imply an immediate direction for the stock. Market participants will need to review the transcript to form their own assessments.
via Markets Gazette