ASTRAZENECA TAKES 12% STAKE IN SUMMIT THERAPEUTICS

AstraZeneca has agreed to buy a 12 per cent stake in US pharmaceutical firm Summit Therapeutics as part of a cancer research partnership, according to the companies. Reports differ on the total value of the deal, with one putting it at £1.5billion and another at $2billion. AstraZeneca is buying 109,000 Summit shares at $18.36 each, a premium of around 18.6 per cent on the US firm's closing price of $15.48 on Monday, according to one account. The deal is expected to complete by the end of the week. Shares in Summit rose sharply following news of the tie-up, while AstraZeneca's stock also moved, with reports differing on the size and direction of the change in London trading.

The partnership centres on ivonescimab, an experimental drug licensed by Summit from Chinese company Akeso, which is designed to block proteins that help cancer evade the immune system and grow blood vessels. The two firms will collaborate on studies combining ivonescimab with AstraZeneca's existing cancer treatments, including its sonesitatug vedotin drug, with trials in gastrointestinal cancer due to begin shortly. Summit co-chief executive Dr Maky Zanganeh said the deal marked the start of "an exciting new chapter" for the company's cancer treatments. AstraZeneca's executive vice president of oncology, Susan Galbraith, said the partnership "could enable new regimens that raise the bar for patients with cancer".

AstraZeneca said in a statement to shareholders that it is "leading a revolution in oncology" with the aim of finding cures for cancer "in every form". The investment follows a pledge from AstraZeneca chief executive Pascal Soriot to invest $50billion in the United States by 2030, with half of the company's revenues expected to come from the US market by then. The move comes weeks after AstraZeneca's shares fell six per cent in a single day following reports that the company had considered a $400billion merger with Bristol Myers Squibb. AJ Bell investment director Russ Mould said taking a stake in a partner is common in the pharmaceutical and biotech sector, giving the larger company a stronger position for a potential future buyout.