Why AstraZeneca Stock Got Thumped on Thursday
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AstraZeneca (AZN 0. 26%) might soon be on the hook for an eventual 11-figure payout, and investors weren't all that comfortable with this. A Bloomberg article published Thursday morning said...
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July 3, 2025
06:26 PM
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AstraZeneca (AZN 0. 26%) might soon be on the hook for an eventual 11-figure payout, and investors weren't all that comfortable with this
A Bloomberg article published Thursday morning said that the company is pursuing what might end up being an expensive partnership with a bio
A cautious market traded AstraZeneca stock down by more than 2% ing the report, on a day when the S&P 500 index landed firmly in positive territory with a 0
That's one big price tag The article that dinged AstraZeneca was a Bloomberg piece asserting that the company is in discussions with Summit Therapeutics (SMMT -7. 70%) on a formal partnership
Image source: Getty Images
The article, which cited unidentified "people familiar with the matter" as its sources, stated the two companies might collaborate on ivonescimab
This is a cancer drug licensed by Summit (from its developer, Akeso) for numerous jurisdictions outside of Akeso's native China, including North America and Europe
According to Bloomberg, AstraZeneca and Summit are currently working out the details of such an arrangement
The article's sources added that an upfront payment of several billion dollars could be involved in any deal; it did not get more specific
One figure mentioned was $15 billion, which is apparently a total in upfront monies and milestone payments Summit might eventually earn
Financial strength AstraZeneca is a global healthcare incumbent that's large, sprawling, and well financed -- at the end of its reported quarter, the U. -headquartered company had more than 4 billion British pounds ($5. 5 billion) in cash alone
Still, $15 billion is a huge amount, even when spread over the lifetime of an in-development drug's lifecycle
I wouldn't be overly concerned this if I were an AstraZeneca holder
In fact, I'd be encouraged
There aren't a great many oncology development grams that have shown as much potential as ivonescimab, and if it ends up fulfilling its mise it could easily be a blockbuster drug
I think it might be smarter to be a buyer than a seller of AstraZeneca at the moment
Eric Volkman has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Summit Therapeutics
The Motley Fool recommends AstraZeneca Plc
The Motley Fool has a disclosure policy.
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