20 November 2025 | 1:03AM EST Equity Research China Healthcare: Pharmaceuticals: Takeaways From Our China Biopharma Trip We hosted an investor trip to China (Nov 10-14) to meet local companies including 3SBio, Akeso (not covered), AbelZeta (private), BeOne, Duality (not covered), Eccogene (private), Everest Medicines, GenFleet (not covered), Grand Pharma (not covered), Hansoh, Hengrui, Henlius, InnoCare, Innovent, Kelun Biotech, Keymed (covered by Honglin Yan), Lepu Biopharma (not covered), Pyrotech (privat ...

Question-and-Answer SessionSo Summit is definitely a very well recognized name in the industry. But just to set the stage for our discussion and for our audience here, can you share a little -- a brief overview of the company, what's your mission, what's the current development of your bispecific ivonescimab and your just broader strategic vision?Dave GancarzChief Business & Strategy Officer Sure, happy to. So Summit Therapeutics is a mission-driven organization. Our mission is simply put to make a signific ...

Key Takeaways Keytruda drove over half of Merck's pharma revenues in the first nine months of 2025.Keytruda sales rose 8% year over year in the third quarter but were weaker than expected.FDA nod to Keytruda Qlex extends patent protection beyond 2028 and aids potential long-term growth.Merck’s (MRK) strong position in the oncology market is largely driven by its biggest revenue driver, Keytruda. The blockbuster PD-L1 inhibitor contributes over half of the company’s pharmaceutical revenues.Keytruda, approved ...

Core Insights - Akeso, Inc. has initiated a Phase I clinical trial for its personalized mRNA vaccine AK154, targeting pancreatic cancer as both a monotherapy and in combination with bispecific antibodies cadonilimab and ivonescimab [1][2][4] Company Overview - Akeso is a leading biopharmaceutical company founded in 2012, focusing on innovative biological medicines and has developed a comprehensive end-to-end drug development platform [8] - The company has over 50 innovative assets in its pipeline, with 24 candidates currently in clinical trials, including 15 bispecific/multispecific antibodies [8] Product Development - AK154 is Akeso's first mRNA-based therapeutic candidate, designed to address the "cold tumor" phenotype in pancreatic cancer by utilizing sequence-specific mRNA vaccines [2][3] - Preclinical data for AK154 indicates strong immunogenicity and anti-tumor activity, suggesting a favorable safety profile when combined with Akeso's bispecific antibodies [4]

Core Insights - The article discusses 15 stocks anticipated to experience significant growth by 2026, amidst a capital rotation towards growth leaders outside of Big Tech as AI spending is projected to reach $500 billion by 2026 [2][4]. Industry Trends - AI spending is expected to reach $500 billion by 2026, with traditional industries such as power infrastructure and construction gaining investor interest due to their role in supporting AI expansion [2]. - Investment in AI encompasses not only technology like GPUs and chips but also infrastructure such as HVAC, IT, and power grids, indicating a broad impact across various sectors including industrials, materials, and financials [2]. Market Outlook - A cautious outlook for 2026 has been expressed, predicting "sticky yields" and a potential shift in Federal Reserve policy towards rate cuts, which may lead to subdued equity momentum [3]. - The sentiment around an AI bubble persists, with industry leaders acknowledging its presence and potential longevity [4]. Stock Selection Methodology - The list of 15 stocks was curated by screening U.S.-listed companies with a market capitalization over $2 billion and a potential upside exceeding 50% as of November 4, 2025, ensuring significant analyst coverage and hedge fund interest [6]. - The strategy of selecting stocks favored by hedge funds is based on research indicating that mimicking top hedge fund picks can lead to market outperformance [7]. Company Highlights - **Amicus Therapeutics, Inc. (NASDAQ:FOLD)**: - Hedge fund interest: 40 holders - Upside potential: 73.53% - Reported a 17% revenue increase to $169.1 million in Q3 2025, achieving GAAP net income of $17.3 million, marking a transition to profitability [9][11][12]. - **Summit Therapeutics Inc. (NASDAQ:SMMT)**: - Hedge fund interest: 30 holders - Upside potential: 78.62% - Announced positive results from the Phase III HARMONi trial, showing significant improvement in overall survival for lung cancer patients [13][15][16]. - **Chime Financial, Inc. (NASDAQ:CHYM)**: - Hedge fund interest: 46 holders - Upside potential: 83.37% - Reported a 29% year-over-year revenue increase to $544 million in Q3 2025, with significant growth in platform-related revenue and active members [18][20][22].

Core Insights - Compass Therapeutics, Inc. is presenting its preclinical development of CTX-10726, a bispecific antibody targeting PD-1 and VEGF-A, at the 40th Society for Immunotherapy of Cancer Annual Meeting [1][3] Company Overview - Compass Therapeutics is a clinical-stage biopharmaceutical company focused on oncology, developing proprietary antibody-based therapeutics to treat various human diseases [4][7] - The company emphasizes the interplay between angiogenesis, the immune system, and tumor growth, aiming to create a robust pipeline of product candidates targeting critical biological pathways for effective anti-tumor responses [4][7] Product Development - CTX-10726 is designed for patients with metastatic or locally advanced tumors, enhancing anti-tumor responses by targeting both immune checkpoints and tumor vasculature [3][5] - The bispecific antibody has shown potent anti-tumor activity in preclinical mouse models, outperforming competitive antibodies like ivonescimab in controlling tumor growth [5][6] - IND submission for CTX-10726 is on track for Q4 2025 [5] Preclinical Data Highlights - In vitro, CTX-10726 demonstrated high-affinity binding to VEGF-A and PD-1, effectively blocking their interactions in a dose-dependent manner [6] - In vivo studies showed superior anti-tumor efficacy in various cancer models, including human lung and colon cancer, with significant tumor size reduction compared to other treatments [6]

Core Insights - Akeso's bispecific antibody, ivonescimab, has received Breakthrough Therapy Designation for its use in combination with chemotherapy for first-line treatment of triple-negative breast cancer (TNBC) [1][2] - This designation is the fourth for ivonescimab, highlighting its substantial clinical benefits across multiple cancer types and Akeso's commitment to addressing unmet medical needs [2] - Ivonescimab is currently involved in 14 Phase III clinical trials globally, including four international multicenter studies, positioning it for transformative outcomes in cancer treatment [2][10] Clinical Development - The ongoing Phase III trial (HARMONi-BC1/AK112-308) for ivonescimab in TNBC is expected to expedite its clinical development and regulatory approval process [2] - Ivonescimab has previously received Breakthrough Therapy Designations for other indications, including non-small cell lung cancer (NSCLC) [2][6] - The final overall survival analysis from the HARMONi-A study demonstrated significant clinical benefits, reaffirming ivonescimab's value in both progression-free survival and overall survival [9] Market Position and Future Prospects - Akeso is advancing ivonescimab in various major tumor types, with ongoing Phase III trials for colorectal cancer and pancreatic cancer [10] - The company has established a robust pipeline with over 50 innovative assets, including 24 candidates in clinical trials [12][11] - Akeso aims to provide affordable therapeutic antibodies and create significant commercial and social value, positioning itself as a leading biopharmaceutical enterprise [12]

Company Overview - Summit Therapeutics is a biopharma company focused on developing ivonescimab, a novel therapeutic agent for non-small cell lung cancer (NSCLC) [3] - The company has exclusive rights to develop and commercialize ivonescimab in the US, Canada, Europe, and Japan under a license agreement with Akeso [3] Clinical Trials and Drug Development - Summit is conducting multiple clinical trials for ivonescimab, including HARMONi, HARMONi-3, and HARMONi-7, targeting various NSCLC treatment lines [1][8] - A new Phase 3 trial, HARMONi-GI3, is set to begin, focusing on colorectal cancer with an enrollment of approximately 600 patients [1] - Positive results from the HARMONi trial have led to plans for a Biologics License Application to the FDA in 4Q25 [8] Financial Insights and Insider Activity - Recent insider purchases include Co-CEOs Maky Zanganeh and Robert Duggan buying 26,680 shares each, and Board member Xia Yu purchasing 533,617 shares for nearly $10 million [9] - Analysts view Summit's stock as attractively valued, with a Moderate Buy consensus rating based on 14 reviews, including 10 Buy ratings [11] Analyst Perspectives - Analysts highlight ivonescimab's efficacy across various NSCLC subgroups, emphasizing its versatility and potential superiority over existing treatments [10] - The stock is currently priced at $18.66, with an average price target of $30.92, suggesting a potential one-year gain of 66% [11]

Core Insights - Summit Therapeutics Inc. (NASDAQ:SMMT) is positioned for exponential growth leading into 2026, with plans to submit a Biologics License Application (BLA) for ivonescimab plus chemotherapy based on HARMONi clinical trial results [1][2] - The company is initiating the HARMONi-GI3 Phase III clinical trial to evaluate ivonescimab plus chemotherapy against bevacizumab plus chemotherapy for unresectable metastatic colorectal cancer, targeting a primary endpoint of progression-free survival (PFS) with an expected enrollment of 600 patients [2] Financial and Operational Updates - Summit Therapeutics released its financial results and operational updates for Q3 2025, indicating ongoing progress in its clinical trials and strategic initiatives [2] - Analyst David Dai from UBS maintained a "Buy" rating on SMMT stock, with a price target of $30.00, supported by promising results from the HARMONi-6 trial [2]

Core Insights - Summit Therapeutics (SMMT) reported a third-quarter 2025 loss per share of 31 cents, significantly wider than the Zacks Consensus Estimate of a loss of 14 cents, and compared to a loss of 8 cents in the same period last year [1][2][9] - The company currently has no marketed products, resulting in no recorded revenues for the quarter [2] - Adjusted research and development expenses rose to $90.5 million, a 184% increase year over year, primarily due to higher clinical costs [3] - Adjusted general and administrative expenses increased by 82% year over year to $12.9 million, driven by costs associated with developing ivonescimab [3] - As of September 30, 2025, the company had cash and short-term investments totaling $238.6 million, down from $297.9 million as of June 30, 2025 [4] Pipeline Developments - Summit has one pipeline drug, ivonescimab, a bispecific antibody targeting PD-1 and VEGF, currently undergoing three late-stage studies for non-small cell lung cancer (NSCLC) [5] - The company plans to submit a regulatory filing to the FDA by year-end for ivonescimab plus chemotherapy for adults with EGFR-mutated, locally advanced, or metastatic non-squamous NSCLC [6] - Data from the HARMONi study indicated a favorable trend in overall survival, despite not meeting the primary endpoint [6] - Additional data from the HARMONi-6 study showed ivonescimab reduced the risk of disease progression or death by 40% compared to BeOne Medicines' Tevimbra [7] - Major protocol amendments were announced for the HARMONi-3 study, which will now include separate analyses for squamous and non-squamous NSCLC [8] - The company is expanding ivonescimab's development to include a phase III study for unresectable metastatic colorectal cancer (CRC), with enrollment expected to start before year-end [12][13] Market Reaction - Shares of Summit fell nearly 5% following the announcement of the amended HARMONi-3 protocol, reflecting investor concerns over the changes and the wider-than-expected loss reported [9][10] - Year to date, the stock has risen over 12%, outperforming the industry average increase of 9% [10]