BioNTech stock has climbed 26% over four days as the German biotech rides a round of cancer treatment success from Summit Therapeutics.
Last week, Summit said its Akeso-partnered immuno-oncology drug topped Merck's blockbuster, Keytruda, in a study of patients with non-small cell lung cancer. Summit's drug, ivonescimab, reduced the risk of progression or death by 49% compared with Keytruda alone.
Like Keytruda, ivonescimab works by blocking a protein called PD-1. This helps immune cells find and destroy cancer cells. But Summit Therapeutics' drug also prevents the formation of new blood vessels by targeting a protein called VEGF.
BioNTech and partner Biotheus are working on a similar drug. But Leerink Partners analyst Daina Graybosch says the story is long from settled for drugs like ivonescimab and BioNTech's BNT327. Drugs that block VEGF have long been tied to eventual toxicity.
"Upward pressure from growing awareness of the scope of the opportunity and anxiety of missing out will be balanced by downward pressure with the realization that the scientific debate is complex, and the development path will be long," she said in a report.
On Tuesday, BioNTech stock jumped 1% to close at 124.71. The shares have surged almost 26% since Sept. 11. Summit Therapeutics presented its data on Sept. 9. BioNTech stock broke out of a lengthy consolidation with a buy point at 114.69 on Sept. 13.
BioNTech Stock: Time Will Tell On VEGF
Graybosch notes that BioNTech and Biotheus are in earlier-stage development than Summit. They are now working through dose optimization in their Phase 2 and Phase 3 study of patients with small cell lung cancer.
"The modest speed by which they can move forward right now may discourage some investors," she said.
At the same conference where Summit Therapeutics presented its ivonescimab results, BioNTech and Biotheus unveiled proof-of-concept data for their drug. The companies have tested it in non-small cell lung cancer, kidney cancer and triple negative breast cancer.
Graybosch kept her outperform rating on BioNTech stock.
"We believe the next major catalysts will come from Phase 3 trial updates from the leading competitor, Akeso and Summit Therapeutics, potentially in 2025," she said. "We also expect multiple rounds of data digging, referencing and debates to continue."
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
