AstraZeneca to Invest $2 Billion in Summit Therapeutics, Collaborate on Cancer Drugs

AstraZeneca AZN -0.48%decrease; down pointing triangle is investing $2 billion into Summit Therapeutics as part of an expanded partnership between the two companies.

Shares of Summit surged 18% to $18.30 in after-hours trading. Shares of AstraZeneca were flat.

In addition to the investment, the two companies also plan to ramp up their collaboration on developing cancer treatments. They signed a clinical collaboration agreement to evaluate AstraZeneca’s sonesitatug vedotin in combination with Summit’s ivonescimab, with the intention of quickly launching studies for some gastrointestinal cancer indications.

They also signed a non-binding memorandum of understanding outlining a planned agreement to conduct clinical trials combining ivonescimab with several of AstraZeneca’s cancer medicines in a range of clinical trials. The agreement is mutually non-exclusive, with each company retaining development and commercial rights and no provisions around royalties, milestones, or revenue- or profit-sharing.

AstraZeneca’s investment is expected to close this week.