Summit Therapeutics closes deal with Akeso to in-license ivonescimab

Summit Therapeutics announced that it has completed the closing of its previously announced definitive agreement with Akeso to in-license its breakthrough bispecific antibody, ivonescimab. Ivonescimab, known as AK112 in China and Australia, and as SMT112 in the United States, Canada, Europe, and Japan, is a novel, potential first-in-class bispecific antibody combining the effects of immunotherapy via a blockade of PD-1 with the anti-angiogenesis effects associated with blocking VEGF into a single molecule. Summit is initiating development activities for SMT112 and will do so first in non-small cell lung cancer indications. The definitive partnership calls for Summit to receive the rights to develop and commercialize ivonescimab in the United States, Canada, Europe, and Japan. Akeso will retain development and commercialization rights for the rest of the world, including China. In exchange for these rights, Summit committed to an upfront payment of $500M to be paid in two installments. The first installment worth $300M has been paid in conjunction with the closing of the transaction. Of the $300M paid to Akeso by Summit, Akeso opted, in accordance with the definitive agreement, to convert approximately $25.1M of the payment into 10M shares of Summit common stock; the remaining $274.9M was paid by Summit to Akeso in cash. The second installment of $200M will become due on March 5, 2023 and will be paid by Summit in cash. Going forward, Akeso will be eligible to receive regulatory and commercial milestones of up to an additional $4.5B. In addition, Akeso will receive low double-digit royalties on net sales in the Summit territories. In conjunction with the closing of the deal, Dr. Michelle Xia, Co-Founder, Chairwoman, and CEO of Akeso, has been appointed to the board of directors of Summit.