Article1 Sep 2017 13:24
I think there's a good case for pairing it with a firm such as Summit Therapeutics (LSE: SUMM), which released its interim results today.
Well-cashed
The drug discovery and development company is working on therapies for Duchenne muscular dystrophy (DMD) and C. difficile infection (CDI). As with all early-stage drug development firms, the goal is to end up with a marketable product that can go on to generate revenue and profit, but such firms are known for burning cash and raising funds. However, Summit Therapeutics seems to have passed its most-precarious lossmaking stage.
During October 2016, the firm signed up to an exclusive licence and collaboration agreement with Sarepta Therapeutics Inc. Sarepta and Summit will collaborate to develop therapies for patients with DMD and share R&D costs. Summit received $40m up front from Sarepta, which helped stabilise the company's financial position. The terms of the deal allow for potential future milestone payments to Summit of up to $522m.
A bridge to commercialisation
Summit also has an option to take up rights to the market in Latin America. Assuming that development goes well, it looks like it has a decent bridge to commercialisation in place and a route to market-generated revenues. Meanwhile, development progress is advanced. The firm expects to report results of a proof-of-concept trial for its potential DMD treatment, Ezutromoid in the first quarter of 2018 and to start phase 3 clinical trials with its C. difficile treatment Ridinilazole during the first half of 2018.