Biotech stocks Top Therapeutics (SMMT) Soars, Dow Jones Pharmaceutical Leader Merck (MRK) fell on Monday morning after preliminary analyses showed positive results from a study into the treatment of late-stage lung cancer tumors.
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The cell therapy market is expected to grow 600% over the next decade, and this biotech is poised to ride that wave.
The China-based study of Summit’s ivonescimab showed a higher overall response rate compared to patients treated with pembrolizumab. Pembrolizumab is currently marketed by Merck under the brand name Keytruda.
Citi raised its price target on Summit shares to 19 from 13 following the announcement, rating the stock a buy.
“The company has “unequivocally delivered” on its claims of “unprecedented” data that “decisively” beat Merck’s Keytruda, with a progression-free survival hazard ratio of 0.51 for ivonescimab,” the Citi note said, as reported by The Fly. Citi described the treatment as having “global paradigm- and practice-changing potential for the treatment of lung cancer and potentially other solid tumors.”
Biotech Stocks: Summit Soars 30%
Summit shares jumped 30% in premarket action Monday. Shares have expanded after breaking out of a cup base, poised to break above a February 2021 high.
On The Dow Jones Industrial Average, Merck shares pared early losses to about 2%. Merck shares have been trying to climb out of a two-month consolidation.
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