AstraZeneca, Merck, Novo deals boost Chinese biotech as global interest grows

Merck will stop manufacturing and marketing Recarbrio, an antibiotic for complicated infections, in the US. The decision is part of a portfolio review and not due to safety issues. Experts note alternative treatments exist, but the move highlights challenges in the antibiotic market, particularly for pediatric use. Merck expanded Recarbrio's label to children in 2025.

AstraZeneca invested $2B in Summit Therapeutics, collaborating on cancer drug combinations, focusing on ivonescimab, a bispecific antibody. Summit holds rights to ivonescimab outside China. AstraZeneca aims to test its ADC sone-ve with ivonescimab. Summit's stock rose 18.6% on the deal.

AstraZeneca is investing $2 billion in Summit Therapeutics, a move UBS describes as beneficial for both companies. AstraZeneca's stock has risen 6.36% over five days but is down 2.98% year-to-date. The investment highlights a strategic partnership in the biopharmaceutical sector.

Summit Therapeutics (SMMT) stock rose 6.23% after AstraZeneca invested $2B via convertible preferred stock, valuing SMMT at a 10% premium. The deal includes clinical collaboration on ivonescimab, with promising trial results. SMMT has no significant revenue, a net loss of $231.8M, and $238.6M in cash. Jefferies upgraded SMMT to Buy with a $25 price target.

Merck (MRK) shares fell 1.5% to $146.48 after acquiring rights to SciBrunch's KRAS G12D inhibitor for $400M upfront. The deal, valued at up to $2.13B, adds to Merck's pipeline but the drug is not yet in human trials. Merck faces Keytruda patent expirations later this decade.

AstraZeneca (AZN) filed an NDA for savolitinib-Tagrisso combo to treat NSCLC with MET overexpression, following positive phase III trial results. The company has a 1.86% dividend yield, a GF Value of $181.75, and a GF Score of 78. Insiders have been selling shares, while 15 investment gurus hold positions.