Summit Therapeutics Stock Sinks as Firm Reports Widening Loss

Key Takeaways

Shares of Summit Therapeutics ( SMMT ) sank 14% Monday as the biopharma firm's fourth-quarter adjusted net loss nearly doubled from the previous year.

The news offset the company's announcement that it had signed a clinical trial collaboration with Pfizer ( PFE ) to evaluate the effectiveness of its cancer drug, ivonescimab, in combination with Pfizer medicines.

Summit reported a non-GAAP net loss of $50.2 million, or $0.07 per share, wider than a loss of $27.9 million, or $0.04 per share, a year ago.

Along with its financial report, Summit explained the partnership with Pfizer will explore how ivonescimab and various Pfizer antibody drug conjugants (ADCs) treat solid tumors.

The agreement has Pfizer conducting the tests, which are set to begin in the middle of the year. Both companies will retain the rights to their respective drugs. Financial terms of the deal were not disclosed.

Co-CEOs Bob Duggan and Dr. Maky Zanganeh said teaming up with the big drugmaker "will allow us to quickly advance beyond our promising late-stage development plan to evaluate ivonescimab in combination with some of the most innovative ADCs from Pfizer."

Despite today's declines, Summit Therapeutics shares have skyrocketed more than four-fold in the past year.

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