Truist Sticks to $35 Target on Summit (SMMT) Despite Shifting Deal Landscape

In a June 2 report, Truist Securities analyst Asthika Goonewardene weighed in on the implications of Bristol-Myers Squibb’s newly announced partnership with BioNTech SE on Summit Therapeutics Inc. (NASDAQ:SMMT). The collaboration focuses on BNT327, a candidate that could emerge as a competitor to Summit’s lead investigational therapy, ivonescimab.

While this collaboration doesn’t directly involve Summit, Goonewardene views it as a strategic shift that may reduce the likelihood of Bristol Myers pursuing an acquisition of Summit.

A lab technician working with chemicals and equipment to create a novel therapeutic drug.

However, the analyst also views the development as a broader endorsement of the PD-(L)1 x VEGF drug class, an area where ivonescimab is gaining traction. He believes the involvement of two major pharmaceutical players adds credibility to this therapeutic approach, potentially boosting investor sentiment and attracting attention to other companies in the space, including Summit.

The analyst reiterates that other large-cap pharma companies, such as AstraZeneca, Roche, and Johnson & Johnson, continue to have a strong portfolio alignment with Summit’s pipeline and could be viable partners or acquirers down the line.

Goonewardene reiterated his Buy rating on Summit Therapeutics, along with a price target of $35.

Summit Therapeutics Inc. is a biopharmaceutical company focused on the discovery, development, and commercialization of medicinal therapies for oncology.

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