Wealthy figure Ken Griffin is offloading Palantir shares and investing in a stock predicted by Wall Street to surge an impressive 139%.
Wealthy figure Ken Griffin is offloading Palantir shares and investing in a stock predicted by Wall Street to surge an impressive 139%.
Curious about the investment moves of America's wealthiest stock traders? Thanks to the Securities and Exchange Commission, you don't have to guess anymore. Individuals managing over $100 million in assets must file a 13F form every three months, detailing their stock purchases and sales.
The past few years have seen artificial intelligence (AI) grip the stock market, sparked by the rise of ChatGPT. One AI-focused stock that's skyrocketed since 2022 is Palantir (PLTR), which saw a 945% surge by Nov. 1, 2024. Despite this dramatic increase, multibillion-dollar investment firm Citadel offloaded nearly 5.2 million Palantir shares in Q3. Meanwhile, Citadel decided to venture into Summit Therapeutics (SMMT), a clinical-stage cancer drug developer, after witnessing its shares surge over 600% in 2024.
The Rising Tide of Summit Therapeutics
Summit is executing clinical trials on ivonescimab, a potential lung cancer treatment outside China.The local regulatory approval for ivonescimab's usage in lung cancer patients who have progressed off their initial treatment was won by Akeso, the Chinese company that owns the therapy.
In September, ivonescimab stunned the industry by presenting better results in a head-to-head study against Keytruda. Newly diagnosed lung cancer patients treated with ivonescimab were 49% less likely to worsen than those receiving Keytruda. Lung cancer may not be the most frequently diagnosed malignancy but impacts severely due to its high mortality rate. Although ivonescimab does not yet have FDA approval, its incredible head-to-head trial results with Keytruda are a significant step toward becoming a $25 billion-per-year drug.
Future Plans for Ivonescimab and Summit Therapeutics
Summit strives to acquire FDA approval for ivonescimab by demonstrating its efficacy through two Phase 3 trials in the US: Harmoni and Harmoni-3. Harmoni will examine ivonescimab's effectiveness when combined with traditional chemotherapy for patients who have already progressed on EGFR TKIs. Results are expected in mid-2025. The Harmoni-3 study, still enrolling new participants, plans to compare ivonescimab plus chemo to Keytruda plus chemo among first-line lung cancer patients. Summit hopes to win over investors with these first-line patient study results, as these patients tend to stay on therapy much longer.
Is It Time to Invest in Summit Therapeutics?
Summit's market cap hit an eye-popping $13.6 billion by November 2024, but analysts are divided. Some believe that ivonescimab will revolutionize lung cancer treatment, while others question the current valuation's stability. Keep in mind that Summit doesn't have any marketed products yet, as it's yet to receive FDA approval for ivonescimab. Investing in Summit is inherently risky, but the potential rewards could outweigh the uncertainties for some.
Given the rising success of Summit Therapeutics, some financial institutions might be considering investing in the company, especially considering its recent clinical trial results with ivonescimab. For instance, wealthy investors who are required to disclose their stock transactions through the 13F form might find the potential of Summit Therapeutics as a promising opportunity for money investment. On the other hand, these investors might also need to weigh the risks, such as the lack of FDA approval for ivonescimab, before making any significant financial decisions in the realm of Summit Therapeutics' stock market involvement.