TIDMSUMM
Summit Corporation plc
("Summit plc" or "the Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2010
Oxford, UK, 12 October 2010, Summit (AIM: SUMM), a UK drug discovery Company
with an innovative Seglin(TM) technology platform and a portfolio of programme
assets, today announces its interim results for the six months ended 31 July
2010.
Highlights
Programme Assets
* SMT 19969 targeting C. difficile shown to be superior to existing therapies
in non-clinical efficacy studies (see today's separate announcement)
* SMT C2100 confirmed as potential treatment for malignant melanoma following
new findings from independent in vivo studies
* Positive results generated in diabetes programme with proof of concept
established for SMT 14224 in in vivo studies
* Strategy to progress SMT C1100 in-place following decision by former partner
to return all commercial rights
Seglin(TM) Technology Platform
* Further validation of the power of Seglin(TM) technology as a potential
source of new medicines following identification of hits against intractable
targets including NS3 helicase (hepatitis C)
* Multiple active compounds identified targeting range of other high-value
therapy areas including Alzheimer's disease and rare diseases
Commercial
* Seglin(TM) technology showcased at international conference resulting in
potential collaborators evaluating and assessing platform and programme
assets
* The Board is targeting the completion of a commercial deal in H1 2011 and a
second deal in H2 2011
Financial
* Operational expenditure in-line with expectations with cash resources until
at least December 2011, beyond the expected receipt of payments from new
deals
* Cash position at 31 July 2010: GBP4.5m (31 January 2010: GBP6.1m)
* Net loss for six months ended 31 July 2010 reduced to GBP1.8 m (31 July 2009:
GBP3.0m)
Commenting on the results, Steven Lee, PhD, Chief Executive Officer at Summit
said: "The business has made good progress during the first half of the year in
seeking to exploit the commercial potential of both our programme assets and
Seglin(TM) technology platform. We look forward to being able to deliver the
commercial success required to create a sustainable business for the benefit of
all stakeholders."
- END -
For more information, please contact:
Summit
Steven Lee, PhD
Richard Pye, PhD Tel: +44 (0)1235 443 939
Singer Capital Markets (Nominated Adviser)
Shaun Dobson / Claes Spång Tel: +44 (0)20 3205 7500
Peckwater PR
Tarquin Edwards Tel: +44 (0)7879 458 364
tarquin.edwards@peckwaterpr.co.uk
Notes to Editors
About Summit plc
Summit is an Oxford, UK based drug discovery company with an innovative
technology platform called Seglins(TM) for the discovery of new medicines, a
portfolio of partner funded drug programme assets and a commercial strategy of
signing multiple early-stage deals
Seglin(TM) technology is using new chemistry to access biological drug targets
that cannot be exploited by conventional drug discovery approaches. Summit's
internal research is currently focussed in the high-value therapy areas of
metabolic and infectious diseases and the Company will further exploit the
technology's wider potential through strategic alliances. Summit's programme
portfolio consists of a number of drug programmes which require no further
investment from the Company but have the potential to deliver future upside for
the business.
Summit's commercial strategy focuses on signing multiple early-stage drug
programme and technology platform deals that generate upfront cash, remove
development costs from the Company, and retain valuable upside potential.
Summit is listed on the AIM market of the London Stock Exchange and trades under
the ticker symbol SUMM. Further information is available at www.summitplc.com.
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
INTRODUCTION
We are pleased to report the technical and commercial advances made by Summit
during the period under review. The Board believes that your Company has taken
significant steps towards achieving the objectives of delivering tangible
commercial results over the coming months for the benefit of all stakeholders
and to help create a sustainable business.
A DIFFERENTIATING STRATEGY
Summit's differentiating strategy for creating value for our investors focuses
on actively targeting multiple early-stage programme and technology based deals.
These deals will generate upfront cash, remove future development costs from
the Company, while crucially retaining valuable upside potential through
development and regulatory milestone payments and sales royalties.
By focusing on the early-stages of the drug discovery process, Summit aims to
mitigate the risks traditionally associated with only advancing one or two
programmes through to late-stage clinical development.
The Board believes that Summit's drug programme assets and innovative Seglin(TM)
technology platform could form the basis for multiple new commercial
transactions with major drug companies that are seeking novel approaches to
unmet medical needs. To underline this belief, your Board is targeting the
completion of one commercial deal in both the first half and second half of
2011.
REVIEW OF DRUG PROGRAMME ASSETS
During the period under review, good progress has been made with a number of our
drug programme assets.
Infectious diseases: SMT 19969 for C. difficile
As announced separately today, Summit's C. difficile programme, which is funded
by a prestigious Wellcome Trust grant, has made excellent progress with positive
results generated from non-clinical efficacy studies. In summary, these
findings show SMT 19969 displays superiority to existing treatment options and
has the potential to become a differentiated front-line antibiotic.
Cancer: SMT C2100 for malignant melanoma
We are pleased to be able to report new findings with our preclinical
development candidate, SMT C2100, showing positive therapeutic effect in a
malignant melanoma model. Melanoma is the most dangerous form of skin cancer
and is responsible for approximately 80% of skin cancer related deaths. With
only limited treatment options available, it remains an area of high unmet
medical need.
During the period, this immunomodulator was independently assessed in in vivo
studies and preliminary results have indicated that it is effective in
preventing the development of tumours. These results both supplement and
support a strong data package that has been generated from previous work.
Metabolic diseases: SMT 14224 for diabetes
Our main programme in metabolic diseases targets type II diabetes, an area of
high unmet medical need with a global market in excess of $30 billion per annum.
The lead compound in our diabetes programme is SMT 14224 and positive results
from a number of in vivo and in vitro studies were announced during the period.
These results demonstrated that SMT 14224 has the ability to increase levels of
insulin via a glucose dependant mechanism to potentially enable diabetic
patients to better control their blood-glucose levels. Further studies intended
to increase the value of this programme are on-going.
Rare diseases: SMT C1100 for Duchenne Muscular Dystrophy
The risk mitigating element of our differentiating strategy was demonstrated
following the decision by our former partner BioMarin Pharmaceuticals Inc.,
('BioMarin') to discontinue their development of our clinical candidate SMT
C1100 targeting the fatal genetic disease Duchenne Muscular Dystrophy ('DMD').
The decision was taken after completion of a BioMarin funded Phase I trial in
healthy volunteers, and from which no safety issues or adverse events were
reported. Summit benefited from an original payment of $7 million from BioMarin
following the licensing, in 2008, of the rights to SMT C1100, and since their
decision, all intellectual property and programme rights have been returned to
Summit.
Summit remains committed to working in DMD as the Board believes that SMT C1100
still has significant potential and that an appropriate formulation of it may
produce a viable medicine. Therefore, Summit is actively seeking both
commercial and charitable partners to progress SMT C1100 into further clinical
studies.
SEGLIN(TM) TECHNOLOGY: Identifying medicines from new chemistry space
Underpinning our business strategy is our innovative Seglin(TM) technology
platform. The development of Seglins has accelerated during the period, while
the profile and understanding of the technology platform's potential as a source
of new medicines has also risen significantly within the wider pharmaceutical
industry.
Seglins are Second Generation Leads from Iminosugars and they have the potential
to access many drug targets in major therapy areas that cannot be explored using
traditional drug discovery approaches. This potential was exemplified during
the period following multiple Seglin hits being identified against NS3 helicase,
a hepatitis C target that has proved intractable for over a decade despite the
efforts of the pharmaceutical industry.
In addition to this progress, a number of other early-stage opportunities have
been identified that target commercially attractive therapy areas. This
includes identification of Seglin hits against the Alzheimer's disease target
OGA, an area that is currently generating significant interest with major
pharmaceutical companies. A second exciting area is rare or orphan diseases and
Summit has identified a number of Seglins targeting different diseases including
Cystic Fibrosis. We look forward to reporting more data from these and other
on-going activities in the near future.
The profile of the Seglin platform received a boost from the technology being
showcased at an international conference in June 2010, and also from the recent
acceptance of a number of articles into leading industry and scientific
journals, including 'Drug Discovery Today' and 'Innovations in Pharmaceutical
Technology'. This has stimulated further interest from potential collaborators.
A number of these are assessing the technology platform against targets
identified by Summit and/or their own proprietary targets and also evaluating
specific Summit programme assets.
FINANCIAL REVIEW: Expenditure in-line with expectations
The Group's financial results for the period were in-line with our expectations.
Further reductions in overheads were realised following the disposal in the
2009/10 financial year of non-core activities.
The Group's cash position at 31 July 2010 was GBP4.5 million (31 January 2010:
GBP6.1 million).
The business remains funded until at least the end of 2011, beyond the expected
receipt of milestone payments from new licensing agreements. It is important to
comment that the decision to return the commercial rights to our DMD programme
had no impact on our current cash life.
Revenue for the six months ended 31 July 2010 increased to GBP0.43 million (31
July 2009: GBP0.11 million). This increase was due to recognition of GBP0.37
million of the grant from the Wellcome Trust for work completed on the C.
difficile programme.
Investment into our research and development activities for the six months ended
31 July 2010 was GBP1.2 million (31 July 2009: GBP1.2 million) and related to
advancing our C. difficile, diabetes and hepatitis C programmes, as well as
additional work to identify early-stage opportunities for our Seglin technology
in other therapy areas. General and administrative expenses were GBP0.9 million
(31 July 2009: GBP1.5 million). Loss for the period from continuing operations
after tax fell to GBP1.8 million from GBP3.0 million in the corresponding period
last year.
Total cash burn from operational activities for the six month period ended 31
July 2010 was as expected at GBP1.5 million (31 July 2009: GBP2.6 million). Total
cash burn included research and development tax credits received in respect of
the year ended 31 January 2010 of GBP0.35 million.
In light of the figures reported today, and the projected cash life of the
Group, these results have been prepared on a going concern basis.
SUMMARY
The business has made good progress during the first half of the year as we seek
to exploit the commercial potential of both our programme assets and innovative
Seglin(TM) technology platform. With the potential of Seglins as a source of
new medicines increasingly being recognised by the wider industry, the Board is
confident of being able to deliver the commercial success required to create a
sustainable business for the benefit of all stakeholders.
On behalf of the Board, we thank our staff for their continuing hard work and
commitment. Finally, we thank all our shareholders for their continuing support
of the business that we anticipate will have an exciting period ahead of it.
Barry Price, PhD Steven Lee, PhD
Chairman Chief Executive Officer
11 October 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)
For the six months ended 31 July 2010
Six months Six months
ended ended Year
31 July 31 July ended
2010 2009 31 January
2010
GBP000s GBP000s GBP000s
=-------------------------------------------------------------------------------
Revenue 432 108 189
Cost of sales - - -
=-------------------------------------------------------------------------------
Gross profit 432 108 189
Other operating income 2 104 196
Administrative expenses
=-------------------------------------------------------------------------------
Research and development (1,219) (1,182) (2,302)
General and administration (911) (1,535) (2,863)
Depreciation and amortisation (243) (472) (826)
Accelerated depreciation of leasehold - (1,361) (1,361)
improvements
Share-based payment (49) 31 (4)
Release of loan - 1,211 1,211
Total administrative expenses (2,422) (3,308) (6,145)
=-------------------------------------------------------------------------------
Operating loss (1,988) (3,096) (5,760)
Finance income 8 7 8
Finance costs (2) (46) (67)
=-------------------------------------------------------------------------------
Loss before taxation (1,982) (3,135) (5,819)
Taxation 201 183 372
=-------------------------------------------------------------------------------
Loss for the period from continuing operations (1,781) (2,952) (5,447)
(Loss) / profit for the period from - (232) 28
discontinued operations
=-------------------------------------------------------------------------------
Loss and total comprehensive income and expense (1,781) (3,184) (5,419)
for the period
=-------------------------------------------------------------------------------
Basic and diluted loss per Ordinary share for (1.07)p (5.20)p (8.13)p
continuing operations
=-------------------------------------------------------------------------------
Basic and diluted (loss)/ profit per Ordinary - (0.41)p 0.04p
share for discontinued operations
=-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (unaudited)
As at 31 July 2010
31 July 31 July 31 January
2010 2009 2010
GBP000s GBP000s GBP000s
=-------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets 4,396 4,650 4,535
Property, plant and equipment 227 534 335
=-------------------------------------------------------------------------------
4,623 5,184 4,870
Current assets
Inventories - 227 -
Trade and other receivables 167 317 246
Current tax 129 886 306
Cash and cash equivalents 4,544 861 6,082
Assets of disposal group classified as held-for- - 1,341 -
sale
=-------------------------------------------------------------------------------
4,840 3,632 6,634
=-------------------------------------------------------------------------------
Total assets 9,463 8,816 11,504
=-------------------------------------------------------------------------------
LIABILITIES
Current liabilities
Trade and other payables (826) (619) (1,104)
Borrowings - (15) -
Liabilities of disposal group classified as held- - (401) -
for-sale
=-------------------------------------------------------------------------------
Total current liabilities (826) (1,035) (1,104)
Non-current liabilities
Provisions (1,180) (1,180) (1,180)
Deferred tax (915) (970) (942)
=-------------------------------------------------------------------------------
Total non-current liabilities (2,095) (2,150) (2,122)
=-------------------------------------------------------------------------------
Total liabilities (2,921) (3,185) (3,226)
=-------------------------------------------------------------------------------
Net assets 6,542 5,631 8,278
EQUITY
Share capital 6,910 5,830 6,910
Share premium account 29,629 25,867 29,633
Share-based payment reserve 1,208 1,123 1,159
Merger reserve (1,943) 12,654 (1,943)
Retained earnings (29,262) (39,843) (27,481)
=-------------------------------------------------------------------------------
Equity attributable to the equity shareholders of 6,542 5,631 8,278
the parent
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
For the six month ended 31 July 2010
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2010 2009 2010
GBP000s GBP000s GBP000s
=-------------------------------------------------------------------------------
Cash flows from operating activities
Loss before tax from continuing activities (1,982) (3,135) (5,819)
(Loss)/profit before tax from discontinued - (232) 28
activities
=-------------------------------------------------------------------------------
Total loss before tax (1,982) (3,367) (5,791)
Adjusted for:
Finance income (8) (7) (8)
Finance cost 2 48 69
Foreign exchange loss 3 22 22
Depreciation 100 1,811 2,045
Amortisation of intangible fixed assets 142 181 323
Loss/(Profit) on disposal of assets 9 (357) 7
Remeasurement of assets in disposal group - 503 -
Cancellation of loan - (1,211) (1,211)
Share-based payment 49 (53) (18)
=-------------------------------------------------------------------------------
Adjusted loss from operations before changes in (1,685) (2,430) (4,562)
working capital and provisions
Decrease in trade and other receivables 79 646 923
(Increase)/decrease in inventories - (50) 181
(Decrease) in trade and other payables (281) (806) (451)
=-------------------------------------------------------------------------------
Cash used by operations (1,887) (2,640) (3,909)
=-------------------------------------------------------------------------------
Taxation received 351 75 815
Net cash used in operating activities (1,536) (2,565) (3,094)
Investing activities
Proceeds from disposal of discontinued - - 1,507
operations
Proceeds from disposal of assets - 525 8
Purchase of property, plant and equipment (1) (22) (48)
Purchase of intangible assets (3) (16) (40)
Interest received 8 7 8
=-------------------------------------------------------------------------------
Net cash generated from investing activities 4 494 1,435
Financing activities
Proceeds from issue of share capital - 315 5,706
Transaction costs on share capital issued (4) - (552)
Repayment of debt during the period - (45) (53)
Repayment of finance lease costs - (7) (8)
Interest paid (2) (48) (69)
=-------------------------------------------------------------------------------
Net cash (used in)/received from financing (6) 215 5,024
activities
Net (decrease)/increase in cash and cash (1,538) (1,856) 3,365
equivalents
Cash and cash equivalents at beginning of 6,082 2,717 2,717
period
Cash and cash equivalents at end of period 4,544 861 6,082
=-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the six months ended 31 July 2010
Six months ended 31 July 2010
Total
Share-
Share based
Share premium payment Merger Retained
capital account reserve reserve earnings
Group GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
=-------------------------------------------------------------------------------
At 1 February 6,910 29,633 1,159 (1,943) (27,481) 8,278
2010
Loss for the
period from - - - - (1,781) (1,781)
continuing
operations
=-------------------------------------------------------------------------------
Total
comprehensive - - - - (1,781) (1,781)
income and
expense
Transaction
costs on prior - (4) - - - (4)
share capital
issued
Share-based - - 49 - - 49
payment
=-------------------------------------------------------------------------------
At 31 July 2010 6,910 29,629 1,208 (1,943) (29,262) 6,542
=-------------------------------------------------------------------------------
Twelve months ended 31 January 2010
Total
Share-
Share based
Share premium payment Merger Retained
capital account reserve reserve earnings
Group GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
=-------------------------------------------------------------------------------
At 1 February 5,597 25,785 1,176 12,654 (36,659) 8,553
2009
Loss for the
year from - - - - (5,447) (5,447)
continuing
operations
Profit for the
year from - - - - 28 28
discontinued
operations
=-------------------------------------------------------------------------------
Total
comprehensive - - - - (5,419) (5,419)
income and
expense
New share 1,313 4,400 - - - 5,713
capital issued
Transaction
costs on share - (552) - - - (552)
capital issued
Transfer
following
realisation on - - - (14,597) 14,597 -
disposal of
discontinued
operations
Share-based - - (17) - - (17)
payment
=-------------------------------------------------------------------------------
At 31 January 6,910 29,633 1,159 (1,943) (27,481) 8,278
2010
=-------------------------------------------------------------------------------
Six months ended 31 July 2009
Total
Share-
Share based
Share premium payment Merger Retained
capital account reserve reserve earnings
Group GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
=-------------------------------------------------------------------------------
At 1 February 5,597 25,785 1,176 12,654 (36,659) 8,553
2009
Loss for the
period from - - - - (2,952) (2,952)
continuing
operations
Loss for the
period from - - - - (232) (232)
discontinued
operations
=-------------------------------------------------------------------------------
Total
comprehensive - - - - (3,184) (3,184)
income and
expense
New share 233 82 - - - 315
capital issued
Share-based - - (53) - - (53)
payment
=-------------------------------------------------------------------------------
At 31 July 2009 5,830 25,867 1,123 12,654 (39,843) 5,631
=-------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 July 2010
1. Basis of accounting
The interim accounts, which are unaudited, have been prepared on the basis of
the accounting policies expected to apply for the financial year to 31 January
2011 and have been prepared in accordance with the principles of International
Financial Reporting Standards ('IFRSs') as endorsed by the European Union and
implemented in the UK.
The IFRSs that will be effective in the financial statements for the year to 31
January 2011 are still subject to change and to the issue of additional
interpretation(s) and therefore cannot be determined with certainty.
Accordingly, the accounting policies for that annual period that are relevant
to this interim financial information will be determined only when the IFRS
financial statements are prepared at 31 January 2011.
The interim financial statements do not include all of the information required
for full annual financial statements and do not comply with all the disclosures
in IAS 34 'Interim Financial Reporting'. Accordingly, whilst the interim
statements have been prepared in accordance with IFRS they cannot be construed
as being in full compliance with IFRS.
The financial information for the year ended 31 January 2010 does not constitute
the full statutory accounts for that period. The Annual Report and Accounts for
31 January 2010 have been filed with the Registrar of Companies. The Independent
Auditors' Report on the Annual Report and Accounts for 2010 was unqualified and
did not include references to any matters to which the auditors drew attention
by way of emphasis without qualifying their report and did not contain
statements under Section 498(2) or 498 (3) of the Companies Act 2006.
2. Loss per share calculation
The loss per share has been calculated by dividing the loss for each period for
both the loss attributable to the continuing activities and also the loss
attributable to the discontinued operations where relevant by the weighted
average number of shares in issue during the six month period to 31 July
2010: 166,249,806 (for the six month period ended 31 July 2009: 56,779,928; for
the year ended 31 January 2010: 67,010,402).
Since the Group has reported a net loss, diluted loss per share is equal to
basic loss per share.
Forward Looking Statements
This document contains "forward-looking statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as "anticipates", "intends", "plans",
"seeks", "believes", "estimates", "expects" and similar references to future
periods, or by the inclusion of forecasts or projections.
Forward-looking statements are based on the Company's current expectations and
assumptions regarding our business, the economy and other future conditions.
Because forward-looking statements relate to the future, by their nature, they
are subject to inherent uncertainties, risks and changes in circumstances that
are difficult to predict. The Company's actual results may differ materially
from those contemplated by the forward-looking statements. The Company cautions
you therefore that you should not rely on any of these forward-looking
statements as statements of historical fact or as guarantees or assurances of
future performance. Important factors that could cause actual results to differ
materially from those in the forward-looking statements and regional, national,
global political, economic, business, competitive, market and regulatory
conditions.
[HUG#1450351]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Summit Corporation PLC via Thomson Reuters ONE
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