search icon

    Market Snapshot

    blog search icon

    Summit Therapeutics (SMMT) Stock: Down But Not Defeated

    By Wasim Omar

    Oct 29,2022

    1:05 AM UTC

    Summit Therapeutics Inc. (NASDAQ: SMMT) is a pharmaceutical company that specializes in the development of treatments for infectious diseases that are largely immune to available anti-biotics. SMMT stock took a beating in the market this year, falling by 80% in the last 12 months alone, due to negative developments this year.

    Summit’s Failure of Ridinilazole

    A noteworthy setback that Summit Therapeutics Inc. (SMMT) faced this year was the disappointing phase 3 trial results for the Ridinilazole treatment. Coming as a blow to the team developing the drug, the trial candidate was unable to prove any superiority over the alternative treatment, vancomycin. Similarly, competing biopharmaceuticals develop similar treatments that hold efficacy and safety to a much higher degree than any available products in the market. Given these conditions, it remains highly unlikely that Summit will ever stand able to commercialize Ridinilazole in the market. Further questions about the safety and side effects of the drug also make it unlikely for doctors to ever prescribe it, compared to its far more effective, and safer alternatives.

    SMMT Business Restructure

    Following the failures of Ridinilazole, the SMMT management has understandably decided to play it safe and has shifted gears towards a broad and diversified plan, rather than a narrow, high-risk approach. The broad scope for this renewed strategy lies around the human gut biome realm, in which Summit experts hold considerable expertise in. In addition to an emerging pipeline relating to this, the company is eyeing acquisitions, as well as collaborations with similar players to work towards mutual goals. The news has been widely welcomed by shareholders of the company.

    Conclusion

    Summit Therapeutics faced utter disappointment earlier this year, following the failings of its prime development candidate, Ridinilazole in phase three trials. The company has decided to take this opportunity to undergo significant strategic shifts which aim to enhance its business sustainability.

    More From Stocks telegraph