Akeso shares soared on September 29, 2023, following a significant financial commitment from AstraZeneca to support the development of its cancer drug, ivonescimab. The British pharmaceutical giant has pledged up to USD2 billion to Summit Therapeutics, an American oncology company holding the overseas rights to the drug.
Akeso, based in Zhongshan, China, saw its stock close 15.5% higher at HKD106.30 (USD13.55) in Hong Kong, after an intraday surge of over 17%. This financial boost marks a pivotal moment for Akeso, which had licensed ivonescimab’s development and commercialization rights in major international markets to Summit in December 2022.
The agreement with AstraZeneca involves an investment in newly issued convertible preferred shares of Summit, aimed at accelerating the development of ivonescimab. This drug is a potential first-in-class bispecific antibody that targets both PD-1, to enhance the immune system's ability to attack cancer cells, and VEGF, which tumors exploit to develop new blood vessels. Ivonescimab is already approved in China for certain non-small cell lung cancer (NSCLC) patients, while Summit is advancing its development in the United States, Europe, and Japan.
In 2022, Akeso's licensing deal with Summit was valued at up to USD5 billion, including upfront and milestone payments, along with double-digit royalties on net sales once the drug reaches the market. At the time, it was the largest overseas licensing agreement for a single innovative drug from China.
Strategic Investment and Clinical Trials
AstraZeneca’s investment values Summit shares at USD18.36 each upon conversion, representing a 10% premium over the previous week's five-day volume-weighted average price. This gives AstraZeneca approximately a 12% stake in Summit. Michelle Xia, founder and chairwoman of Akeso, expressed optimism that AstraZeneca’s strategic investment will provide essential funding and industry resources to expedite ivonescimab’s global clinical development, including in China.
The collaboration will also explore new trials combining ivonescimab with AstraZeneca’s antibody-drug conjugates (ADCs), which deliver drugs directly to cancer cells. This approach is expected to expand the drug’s development and explore its efficacy across various tumor types.
Under this clinical partnership, Summit and AstraZeneca will test ivonescimab in conjunction with sonesitatug vedotin, an ADC designed to target cells carrying the Claudin-18.2 protein. Trials focusing on certain gastrointestinal cancers are anticipated to commence shortly, with AstraZeneca sponsoring the studies and both companies sharing the costs.
The two firms have also signed a non-binding memorandum of understanding to potentially establish a broader global clinical program. This initiative would combine ivonescimab with other AstraZeneca cancer treatments, including additional ADCs. Each company will maintain its current development and commercial rights to their respective drugs.
In the United States, the Food and Drug Administration is reviewing an application for the approval of ivonescimab in combination with chemotherapy for NSCLC patients with epidermal growth factor receptor (EGFR) mutations. The drug is also undergoing Phase III trials for a variety of cancers, including small-cell lung, biliary tract, bladder, triple-negative breast, head and neck, colorectal, and pancreatic cancers.
