AstraZeneca PLC Sponsored ADR (AZN.US) Investment in Summit (SMMT.US) Gains Bullish Views from JPMorgan and Citi: Cancer Drug Strategy Set for Validation

AstraZeneca PLC Sponsored ADR (AZN.US) announced an investment in U.S. biotech company Summit Therapeutics (SMMT.US) and a collaboration on a new cancer drug. Following the news, AstraZeneca PLC Sponsored ADR rose about 2% in pre-market trading on Tuesday, while SMMT extended its gains, rising about 23%. Analysts at JPMorgan and Citi welcomed the deal, saying it aligns with AstraZeneca PLC Sponsored ADR's cancer strategy. According to reports, analysts led by Richard Vosser wrote in a note that JPMorgan (Overweight rating) believes the investment will allow AstraZeneca PLC Sponsored ADR to test ivonescimab within its own pipeline, including in combination with its Sone-V as well as a broader cancer portfolio that includes antibody-drug conjugates (ADCs). The bank said that upon completion of the investment, AstraZeneca PLC Sponsored ADR will hold rights equivalent to approximately 12% of Summit's shares. Citi (Buy rating) said: "This deal is consistent with AstraZeneca PLC Sponsored ADR's efforts to make its expanding ADC portfolio a core pillar of its future oncology treatment regimens." "We view this deal as a strong external validation of ivonescimab and the PD-1/VEGF bispecific antibody asset class," analyst John Yung wrote in the report.