Summit wins multi-million pound drug funding

Summit, a UK drug discovery company, said it had been awarded four million pounds to support clinical development of a new C. difficult antibiotic

Summit, a UK drug discovery company, said it had been awarded four million pounds to support clinical development of a new C. difficult antibiotic

The money from charitable foundation the Wellcome Trust will be used to develop Summit's SMT 19969 drug through to clinical proof of concept studies.

News of the award caused the firm's shares to jump as much as 11% in early trading on Monday.

SMT 19969 is a molecule being developed as an antibiotic for the treatment of infections caused by C. difficult.

Such infections are usually caused by antibiotics themselves, and, as such, most cases happen in a healthcare environment, such as a hospital or care home, according to the NHS.

Summit said the award would provide non-dilutive funding to de-risk its development as the drug advanced through important clinical milestones.

Under the terms of the award, the firm will be eligible for up to £4m in staged, success-based payments.

The company will immediately receive £1.26m that will support a Phase One clinical trial in healthy volunteers and additional non-clinical studies designed to enhance clinical data.

The Phase One trial is expected to start by the end of 2012 with results expected in the first half of 2013.

A successful outcome would trigger a further three payments from the Wellcome Trust with these contributing significantly towards undertaking a Phase Two proof of concept trial in patients, Summit said.

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022
Are UK house prices set to fall? It’s not so simple
House prices

Are UK house prices set to fall? It’s not so simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
How solar panels could lower your energy bill
Energy

How solar panels could lower your energy bill

Solar-panel installation firms are reporting a four-fold increase in orders this year compared with 2021. Ruth Jackson-Kirby explains how solar can he…
14 Aug 2022