AstraZeneca has won warm reviews from UBS and Jefferies for its $2 billion investment in Summit Therapeutics.
Jefferies called the deal "strategically smart", arguing it gives the FTSE 100 drug maker a seat at the table without betting the farm.
AstraZeneca gets exposure to Summit's ivonescimab, a PD-1/VEGF drug that both fires up the immune system and cuts off the blood supply tumours need to grow.
UBS said emerging evidence suggests this class of drug could outperform existing PD-1 treatments in some cancers.
If it becomes the new standard of care, data on how it works in combination with other drugs will matter a great deal.
Low-risk route in
The first trials will pair ivonescimab with sonesitatug vedotin, an AstraZeneca antibody drug conjugate (ADC) that delivers a toxic payload straight into cancer cells, in gastrointestinal cancers.
Jefferies likes that AstraZeneca avoids the risk of a bigger acquisition before key trial results land, while keeping itself in the game if the approach is validated.
AstraZeneca will hold the equivalent of about 12% of Summit, or 10.6% on a fully diluted basis.
UBS said the implied price of $18.36 a share is an 18.6% premium to Summit's close on 28 September.
It also noted Summit confirmed AstraZeneca had not seen unpublished results from its HARMONi-3 trial.
That phase III study in advanced lung cancer is now the one to watch, with Jefferies expecting the first major readout before the end of 2026.
Jefferies has a Buy rating and 17,500p target, while UBS rates the shares Buy with a 15,200p target.
