LONDON (Alliance News) - Drug company Summit Corporation PLC Wednesday said its loss widened in its last financial year as its research and development costs rose as both its drug programmes moved towards clinical trials.
The Oxford-based company is currently developing treatments for Duchenne Muscular Dystrophy and C. difficile infections. It currently has revenue made up of milestone payments supporting the development the C. difficile antibiotic, but its profit and loss account is largely down to its research and developments costs.
Its loss in the year to end-January was GBP6.1 million, compared with a loss of GBP4.2 million a year earlier, as R&D costs rose to GBP6.6 million, from GBP3.6 million. Its revenue was GBP1.4 million, down from GBP1.8 million.
Summit's net cash position at the end of January was GBP2.0 million, down from GBP3.4 million a year earlier, but has since been strengthened by a GBP22.0 million share issue.
"With the funds secured from investors, charitable foundations and the UK Government, Summit is now well placed to execute our future clinical plans that seek to establish the potential of our two programmes as potential life-changing treatments for two serious diseases," Summit Chairman Frank Armstrong said in a statement.
"Summit has now entered an exciting period in its development. Both programmes have begun patient clinical trials, the future results of which should provide a fuller understanding about the potential of these life-changing treatments for two serious diseases," he added.
Summit shares were down 1.1% at 8.65 pence Wednesday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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