Despite Dropping Out of University, This Billionaire Scored a 1,000% Gain on Biotech Shares

Success, it appears, is not always contingent upon a lofty formal education. Bob Duggan, a successful entrepreneur, has profited immensely from an investment in biotechnology shares. His most recent wager on Summit Therapeutics (SMMT) has skyrocketed by more than 1,000 per cent. According to The Wall Street Journal, the surge in the biopharmaceutical company’s shares occurred after late-stage trial data showed that its drug, Ivonescimab, outperformed Merck’s blockbuster cancer medicine, Keytruda, in patients with lung cancer. Duggan, who was already a billionaire before the Summit investment, is now estimated to have a fortune of around US$16 billion. Nevertheless, significant hurdles remain regarding the drug, including its performance in global trials outside of China, where Summit licensed Ivonescimab from the Chinese biotech firm Akeso in 2022. This is not the first time Duggan has struck gold in the biotechnology sector. Two decades ago, he invested in Pharmacyclics, a company developing the cancer drug Imbruvica. After navigating various challenges, Pharmacyclics was ultimately acquired by AbbVie for US$21 billion, cementing Duggan’s status as a key figure in the industry. Duggan, now 80, has proven that success in this industry is not solely the preserve of those with high academic credentials. Nathan Vardi, author of the book ‘For Blood and Money’, noted that while many argue Duggan was simply lucky, his ability to determine when to hold firm or withdraw from an investment is the key to his success. Duggan’s experience across various industries, ranging from baking to robotics, gives him a different perspective when confronting challenges. He believes that an outsider’s lack of understanding, combined with the intensity he brings, emboldens him to take unconventional steps. Ivonescimab, for example, not only functions as a PD-1 protein binder to trigger the immune system but also inhibits the VEGF protein that supports the growth of tumour blood vessels. This dual mode of action is expected to provide a stronger effect in fighting cancer. However, experts warn that the dual action could pose safety issues down the line. Given the side effects observed in drugs targeting VEGF, analysts are awaiting further data to ensure the medicine is safe and can improve patient survival. Although Summit has the opportunity to compete in the PD-1 market valued at US$50 billion, the execution challenges remain significant. Analysts caution that success will heavily depend on proper management and effective trial design strategies. As the market digests the magnitude of the challenges facing Summit, the company’s shares are expected to remain volatile and could experience declines following the price surge after the data release.