BioNTech stock rocketed Wednesday after rival Summit Therapeutics unveiled promising results for a novel approach to lung cancer treatment.
Summit's Akeso-partnered drug, ivonescimab, works by blocking proteins called PD-1 and VEGF. This differs from market-dominating drugs like Merck's Keytruda, that block PD-1 alone.
In the Phase 3 study, lung cancer patients who received ivonescimab and chemotherapy lived longer before their disease worsened — a measure known as progression-free survival — than patients given a PD-1 blocker and chemotherapy.
Leerink Partners analyst Daina Graybosch says the results have a highly promising readthrough for BioNTech stock. BioNTech is also working on a drug that simultaneously blocks PD-1 and VEGF. The pathway is promising, but has proved tricky in the past.
On today's stock market, BioNTech stock soared 9.7% to 114.83. Shares of Summit Therapeutics ramped 21.5% to 33.23. Merck stock fell a fraction to 78.74.
BioNTech Stock Rides On Summit Therapeutics' Coattails
Summit Therapeutics and Akeso tested their drug in patients in China with squamous non-small cell lung cancer, or NSCLC. In this population, patients generally receive a combination of Keytruda and chemo.
The regimen from Summit and Akeso outperformed a PD-1 blocker called tislelizumab and chemo. It's the first combination to ever show a clinically meaningful benefit over PD-1 plus chemo, they said in a news release.
It's important to note that patients with squamous NSCLC tend to have weak outcomes on a PD-1 and chemotherapy combination. In the next study, Summit Therapeutics and Akeso plan to enroll patients with squamous and non-squamous forms of the disease.
BioNTech is taking a similar approach, Leerink's Graybosch said. Merck is also working on its own drug that blocks PD-1 and VEGF. The company is spending up to $3.3 billion in a licensing deal with China's LaNova Medicines.
"We see a buying opportunity (to purchase BNTX shares) for investors who should have incrementally more confidence" in the approach to lung cancer treatment, she said in a report.
She has an outperform rating on BioNTech stock.
Will Keytruda Be Ousted From NCSLC?
Graybosch says it's likely drugs like ivonescimab will replace Keytruda as the standard of care in previously untreated NSCLC.
"Though we expect MRK will be competitive here by aggressively moving forward with their own bispecific," she said, referencing drugs that can block two proteins at one time. "Investors will likely need more details before they give MRK credit."
Ultimately, a benefit on progression-free survival, or PFS, is promising. But it will be more important to determine whether ivonescimab leads to a benefit on overall survival. Overall survival is how long patients live before dying of any cause. Anti-VEGF drugs have historically shown a benefit on PFS, but that hasn't led to any improvements in overall survival.
"We expect investor debate to center on whether PFS benefit will translate to OS," Graybosch said.
BioNTech Stock Is On The Rise
BioNTech stock shot to a two-month high on Summit Therapeutics' results.
Shares have an improved Relative Strength Rating of 81 out of a best-possible 99, according to IBD Digital. The RS Rating pits a stock's 12-month performance against all other stocks. BioNTech had an RS Rating of 64 just a week ago and 33 a month ago.
Summit Therapeutics shares have a perfect RS Rating of 99.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
