Summit Therapeutics Inc (NASDAQ:SMMT), a clinical-stage drug discovery and development company, confirmed on Friday that it has closed a definitive agreement with Akeso Inc (HKEX:9926) to in-license its breakthrough bispecific antibody, ivonescimab.

Ivonescimab, known as AK112 in China and Australia, and as SMT112 in the United States, Canada, Europe and Japan, is a novel, potential first-in-class bispecific antibody combining the effects of immunotherapy via a blockade of PD-1 with the anti-angiogenesis effects associated with blocking VEGF into a single molecule.

Summit is initiating development activities for ivonescimab and will do so first in non-small cell lung cancer (NSCLC) indications.

Under the deal with Akeso, Summit will receive the rights to develop and commercialize ivonescimab in the United States, Canada, Europe and Japan. Akeso will retain development and commercialization rights for the rest of the world, including China.

In exchange for these rights, Summit has committed to an upfront payment of USD500m, with USD300m paid in in cash and shares in conjunction with the closing of the transaction. The remaining USD200m will become due on 5 March 2023 and will be paid by Summit in cash.

Akeso will also be eligible to receive regulatory and commercial milestones of up to an additional USD4.5bn and will receive low double-digit royalties on net sales in the Summit territories.