Summit Therapeutics Inc. (SMMT): Among the Best Cancer Stocks to Invest in for Long-Term Gain

We recently published a list of 10 Best Cancer Stocks to Invest in for Long-Term Gains. In this article, we are going to take a look at where Summit Therapeutics Inc. (NASDAQ:SMMT) stands against other best cancer stocks to invest in for long-term gain.

Surging Cancer Cases and Costs Drive Growth in the Global Oncology Market

After cardiovascular disease, cancer is the second most common cause of mortality worldwide. In January 2023, the American Cancer Society released figures indicating that by the end of 2023 alone, there would be approximately 1,958,310 cancer patients in the United States. Compared to 2010, this is a 28% increase. In the United States, it was anticipated that over 600,000 people would die from cancer in 2024, and over 2 million new cases would be diagnosed. Cancer treatment expenses are rising in tandem with the growing number of cancer sufferers. In 2020, cancer treatment in the United States cost about $200 billion, but by 2030, the total cost is expected to surpass $245 billion.

Over the past 20 years, global funding for cancer research has increased dramatically, according to the “Oncology Pharmaceuticals Market 2024” report. Between 2017 and 2022, the FDA authorized 161 new cancer medicines, demonstrating the rapid advancement of cancer treatment. According to these figures, oncology is among the most extensive fields within the field of biological sciences. From diagnosis to therapy, the whole cancer care process is covered by the oncology industry.

Global biotech and pharmaceutical businesses are always working to create more potent cancer treatments. Fortune Business Insights predicts that the scope of this undertaking will only grow shortly. In 2023, the global market for cancer medications was estimated to be worth $201.75 billion. It is projected to increase from $220.80 billion in 2024 to $518.25 billion by 2032 at a compound annual growth rate (CAGR) of 11.3%.

The development of tailored immunotherapies for cancer treatment and the rising incidence of cancer worldwide are some of the main reasons propelling the market for oncology medications. Investing in businesses related to oncology is a profitable venture due to this growth rate. The global market for oncology medications is dominated by North America. In 2023, its market share was 45.92%.

Precision Oncology and AI Revolutionize Cancer Treatment and Diagnostics

The market for precision oncology exhibits comparable patterns. Precision oncology, according to the National Institutes of Health (NIH), is a type of treatment in which doctors select therapies while taking into account each patient’s unique tumor’s DNA signature. In 2024, the global precision oncology market was estimated to be worth $115.8 billion, according to data from Grand View Research. A compound annual growth rate (CAGR) of 8.05% is projected between 2025 and 2030. The rising need for diagnostic products, technical advancements, avoiding specific medication resistance, and the growing reduction of adverse effects of cancer treatments are all factors contributing to this growth.

AI usage is rapidly growing in the field of cancer. A study by Mordor Intelligence projects that the size of the AI in the cancer industry will be approximately $1.98 billion in 2025 and will grow to approximately $9.04 billion by 2030. This represents growth from 2025 to 2030 at a CAGR of 35.51%.

AI’s growing use in the diagnosis, analysis, and treatment of complicated oncology datasets is simplifying the process and lessening the strain on medical staff and hospital infrastructure. Although North America is the largest market for AI in oncology, the Asia-Pacific area is the one with the quickest rate of growth. Given this, we will take a look at some of the best cancer stocks for long term gains.

Our Methodology

In our methodology, we first filtered cancer stocks based on their 5-year average returns. From this pool, we identified the top 10 stocks with the highest number of hedge fund holders as of Q4 2024, according to the Insider Monkey database. In cases where multiple stocks had the same number of hedge fund holders, we used their 5-year total returns as a tiebreaker, ranking the stock with the higher return above the others.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Summit Therapeutics Inc. (NASDAQ:SMMT)

Number of Hedge Fund Holders: 25

Total 5-Year Return: 745.45%

Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical company focused on developing innovative drugs for cancer and infectious diseases. Its lead candidate, Ivonescimab, is a bispecific antibody targeting non-small cell lung cancer.

Summit Therapeutics Inc. (NASDAQ:SMMT) ended Q1 2025 with $361.3 million in cash and short-term investments, down from $412.3 million at year-end 2024. This cash position still provides a strong runway for ongoing trials. Its R&D expenses rose to $51.2 million (up from $30.9 million), reflecting accelerated clinical activity, especially for Ivonescimab. G&A expenses increased to $15.6 million as the company expanded its team and commercialization efforts. The net loss widened to $62.9 million or $ 0.09 per share, typical for a biotech scaling late-stage development.

Ivonescimab continues to drive clinical momentum and remains a key focus among the best cancer stocks. In China, it achieved regulatory approval for a second NSCLC indication based on strong results from the HARMONi-6 and HARMONi-2 Phase III trials. The drug showed statistically significant PFS benefits and a promising trend toward improved overall survival. Globally, enrollment is underway in pivotal trials like HARMONi-3 and HARMONi-7.

Summit Therapeutics Inc. (NASDAQ:SMMT) expanded its research footprint through collaborations with MD Anderson (targeting cutaneous squamous cell carcinoma and glioblastoma) and Pfizer, with upcoming trials combining ivonescimab with antibody-drug conjugates. The company also appointed oncology veteran Robert LaCaze as Chief Commercial Officer to lead its commercialization strategy.

Overall, SMMT ranks 10th on our list of best cancer stocks to invest in for long-term gain. While we acknowledge the potential of cancer companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SMMT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.