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(Sharecast News) - AstraZeneca is to invest $2bn in US biopharma Summit Therapeutics, the British drugs giant said on Tuesday, as it looks to broaden its oncology offering.
Under the terms of the deal, AstraZeneca will buy newly-issued equity in the New York-listed oncology specialist, giving it rights equivalent to around 12% of Summit's common stock, or around 10.6% on a fully diluted basis.
The tie-up will see the companies collaborate on a series of studies into their cancer treatments. In particular, they will look to accelerate the development of Summit's ivonescimab, an investigational bispecific antibody, as well as launching a clinical collaboration to evaluate the treatment in combination with sonesitatug vedotin (Sone-Ve). Sone-Ve is a novel antibody drug conjugate (ADC) being developed by AstraZeneca for use in gastrointestinal cancers.
Susan Galbraith, the blue chip's executive vice president of oncology haematology research and development, said: "A core pillar of our oncology strategy is to broaden the reach of our ADC portfolio, as the backbone of treatment across tumour types with combinations alongside next-generation immunotherapies."
Summit said it was an "exciting new chapter" in ivonescimab's advancement. Co-chief executive Robert Duggan continued: "This significant investment, as well as the collaboration, is a powerful validation of the potential of ivonescimab. We are proud to welcome AstraZeneca as a strategic investor."
Shares in Summit, which first announced the tie-up overnight, soared 18% in extended after hours trading.
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