Kumaresan Selvaraj pillai


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Wednesday, October 31, 2012

Summit Corporation - Cash Injection for C.difficile Programme

Summit Corporation

Cash Injection for C.difficile Programme

  • Summit Corporation has been awarded up to £4 million ($6.5 million) from the Wellcome Trust to support the development of its SMT 19969 programme for the treatment of C.difficile infection.
  • This represents the second funding award that the Wellcome Trust has made in support of Summit's C. difficile antibiotic programme and follows an award made under the Seeding Drug Discovery Initiative in 2009.
  • In addition, the UK drug discovery company revealed that it has initiated dosing of healthy volunteers in the Phase I clinical trial of SMT 19969.
  • With the group also recently announcing positive top-line results from its SMT C1100 Phase I clinical trial for the treatment of the fatal genetic disease Duchenne Muscular Dystrophy (10th October 2012), our stance remains speculative buy.

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Table: Financial overview
Year to 31st Jan
2011A
2012A
2013E
2014E
Revenue (£000)
763
1,765
1,732
4,870
PBT (£000)
(5,916)
(2,998)
(4,048)
796
EPS (p)
(2.82)
(1.51)
(1.19)
0.36
Dividend (p)
0.0
0.0
0.0
0.0

Source: GECR and company

Speculative Buy
Target price
16.83p
Key data
Share Price
4.63p
52 week high/low
8.25p / 2.25p
Primary exchange
AIM
EPIC
SUMM
Shares in issue
354.09 m
Market Cap
£16.38m
Sector
Pharmaceuticals & Biotechnology
Valuation
NAV / Share
1.35p
TNAV / Share
1.30p
Affiliations: None.
Important: All disclaimer information can be found on the last page of the document


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