Summit boosts Instil, BioNTech as lead drug beats Merck’s Keytruda

After Summit Therapeutics (NASDAQ:SMMT) said early this week that its lead asset ivonescimab outperformed Merck’s (NYSE:MRK) blockbuster anti-PD-1 therapy Keytruda in a late-stage trial, Instil Bio (NASDAQ:TIL) and BioNTech (NASDAQ:BNTX), which develop similar drugs, have recorded sharp gains.

Shares of Summit (SMMT) spiked after it announced on Sunday that lung cancer patients who received ivonescimab, a PD-1/VEGF bispecific antibody developed with its Chinese partner Akeso (OTCPK:AKESF) lived more than five months on average compared to those who were on Keytruda.

The Miami, Florida-based biotech has raised $235M in gross proceeds since the announcement, as investors focused on ivonescimab’s drug class, designed to treat cancer via a dual action on tumor-associated molecules, PD-1 and VEGF.

Biotechs with similar pipeline assets rallied in reaction, with Instil Bio (TIL) and BioNTech (BNTX) among notable gainers.

On Friday, Baird raised its price target on Instil Bio (TIL) to $180 from $32 per share, citing more encouraging data for the drug class at the European Society for Molecular Oncology (ESMO) scheduled from Sept. 13–Sept. 17

“We’ve seen enthusiasm for the PD-1/L1xVEGF space has moved Instil shares higher in sympathy,” analyst Jack Allen wrote with an Outperform rating on the stock. “Despite the recent positive move, we continue to believe shares of Instil remain undervalued,” he added.

As for BioNTech (BNTX), the COVID-19 vaccine developer signed an agreement with Chinese biotech Biotheus to obtain ex-China rights to the latter’s PD-1/VEGF bispecific antibody, PM8002. The German biotech is set to present mid-stage data for the drug at ESMO on Saturday.