Summit Therapeutics (NASDAQ: SMMT) reported a narrower-than-expected loss for the first quarter of 2019 while revenues missed estimates. The stock was inactive in premarket trade.
Revenues totaled GBP0.2 million ($0.3 million) compared to GBP3.9 million in the same period last year. The decrease was mainly driven by the reduction in revenue related to the Sarepta licence and collaboration agreement after the Group decided to discontinue the development of ezutromid last June.
Net loss was GBP4 million ($5.2 million) compared to GBP5.8 million last year. Loss per share amounted to 3 pence ($0.04) versus 8 pence last year.
Research and development expenses decreased to GBP8.3 million in the quarter from GBP11.6 million in the year-ago period.
In February, Summit initiated a Phase 3 clinical trial which aims to develop ridinilazole as a treatment for C. difficile infection. Topline data is expected to be reported in the second half of 2021. The clinical and regulatory development of ridinilazole is supported by a BARDA contract worth up to $62 million.
The company is also developing SMT-571, a new class antibiotic intended for the treatment of infections caused by Neisseria gonorrhoeae. The development of SMT-571 is being supported by an award of up to $4.5 million from CARB-X.
The company had a net cash inflow of GBP1.3 million in Q1 2019 compared to GBP7.2 million last year. As of 30 April 2019, total cash and cash equivalents held were GBP28.3 million.
Summit believes that existing cash and cash equivalents, along with anticipated payments from BARDA for the development of ridinilazole, and from CARB-X for the development of its gonorrhoea antibiotic candidate, will be sufficient to fund its operating expenses and capital expenditure requirements through 31 January 2020.