Summit Therapeutics Raises $235 Mln In Private Placement; Stock Up In Pre-market

(RTTNews) - Summit Therapeutics Inc. (SMMT) announced Thursday proceeds of approximately $235 million in a fundraise led by insiders & biopharma institutional investors in a private placement.

In pre-market activity on the Nasdaq, the shares were gaining around 5.1 percent to trade at $23.85.

The company accepted offers from biotech institutional and individual investors for around 10.35 million shares of its stock at $22.70 per share, the closing price on Wednesday.

The capital raise was completed without bankers' fees.

All of Summit's Section 16 officers participated in the capital raise. A total of $79 million was raised by insiders, including Robert Duggan, Maky Zanganeh, Manmeet Soni, and Bhaskar Anand, as well as Jeff Huber, a member of the Board of Directors, who invested through a controlled entity. The remaining $156 million was raised with multiple biopharma institutional investors.

Summit said it intends to use the net proceeds to advance, in part, the clinical development of ivonescimab, including in non-small cell lung cancer and in settings outside of lung cancer.

Ivonescimab was engineered by Akeso Inc. and is currently engaged in multiple Phase III clinical trials. Over 1,800 patients have been treated with ivonescimab in clinical studies globally.

Summit has begun its clinical development of ivonescimab in non-small cell lung cancer, commencing enrollment in 2023 in two multi-regional Phase III clinical trials, HARMONi and HARMONi-3, with a plan to initiate HARMONi-7 in early 2025.