North American Morning Briefing: Stock Futures Mostly Drop Ahead of Crucial Inflation Data

Eli Lilly (LLY) won a preliminary ruling against Novo Nordisk's request to block its ads for Zepbound and Mounjaro. The judge found insufficient evidence of harm to Novo's sales or reputation. Both companies compete in a multi-billion-dollar weight-loss market. The case continues, with Novo seeking to prove false advertising claims.

Citizens reaffirmed a Market Outperform rating and $40 price target for Summit Therapeutics (SMMT) based on Phase 3 trial data. The trial showed improvements in survival rates for a cancer treatment. SMMT has a market cap of $11.6B, trades at $14.50, and holds $2.8B in cash. Analysts have mixed views on its recent developments, including a $2B investment from AstraZeneca.

A US judge rejected Novo Nordisk's request to stop Eli Lilly's weight-loss drug ads, which Novo claimed were misleading. The case involves a market with annual sales in the tens of billions.

A US judge denied Novo Nordisk's request to block Eli Lilly's weight-loss drug ads, ruling the harm claim insufficient. Novo Nordisk sued in July, alleging false advertising. Eli Lilly denies wrongdoing. The US weight-loss drug market is projected to exceed $100B by 2030.

Summit Therapeutics reported that Akeso's HARMONi-GI1 study showed ivonescimab plus chemotherapy improved overall survival in advanced biliary tract cancer compared to durvalumab plus chemotherapy, reducing death risk by 25% (OS hazard ratio 0.75). Summit plans a U.S. registration-enabling study starting in Q4 2026.

Jefferies reiterated a Buy rating on Summit Therapeutics (NASDAQ:SMMT) with a $30 price target, citing encouraging pipeline readthroughs and positive data from the European Society for Medical Oncology conference. The stock is currently trading at $14.88, suggesting a potential upside of nearly 100%. Analysts have mixed views, with some highlighting the company's strategic collaboration with AstraZeneca and others expressing skepticism.