AstraZeneca will invest $2 billion in Summit Therapeutics through convertible preferred shares. The shares will convert at $18.36 per common share, a premium to Summit’s recent trading price. After conversion, AstraZeneca would hold an approximately 12% stake in Summit.
The investment will provide capital to support development of Summit’s lead cancer drug candidate, ivonescimab. The companies will also collaborate on clinical trials testing ivonescimab alongside AstraZeneca cancer medicines, including antibody-drug conjugates (ADCs). Initial trials will focus on gastrointestinal cancers. Each company will retain the rights to its own drugs.