Astrazeneca, the FTSE 100 drugs giant, has invested $2bn in US pharmaceutical firm Summit Therapeutics as part of a cancer research tie-up. The agreement includes Astrazeneca purchasing 109,000 shares in Nasdaq-listed Summit at $18.36 per share.
This share price represents an 18.6 per cent premium on Summit's closing price of $15.48 on Monday. The deal, expected to conclude by the end of the week, will give Astrazeneca a 12 per cent shareholding in Summit's outstanding stock.
The collaboration will focus on developing ivonescimab, a new drug designed to block proteins that help cancer evade the immune system and grow blood vessels. This treatment, licensed by Summit from Chinese drugmaker Akeso, will be trialled alongside Astrazeneca’s existing cancer medicines.
Dr Maky Zanganeh, co-chief executive of Summit, described the deal as the beginning of “an exciting new chapter in the advancement” of its new cancer treatments. Susan Galbraith, Astrazeneca’s executive vice president of oncology, stated the deal “could enable new regimens that raise the bar for patients with cancer across the treatment landscape”.