Upcoming AWS Coverage on MEI Pharma Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 27, 2016 / Active Wall St. announces its post-earnings coverage on Summit Therapeutics PLC (NASDAQ: SMMT). The Company reported its financial results for the third quarter fiscal year 2016 (Q3 FY16) on December 15, 2016. The Oxford, United Kingdom-based Company's net loss narrowed during the reported period. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Summit Therapeutics' competitors within the Drug Manufacturers - Other space, MEI Pharma, Inc. (NASDAQ: MEIP), reported on November 09, 2016, its results for its first quarter ended September 30, 2016. AWS will be initiating a research report on MEI Pharma in the coming days.

Today, AWS is promoting its earnings coverage on SMMT; touching on MEIP. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SMMT

http://www.activewallst.com/registration-3/?symbol=MEIP

Earnings Reviewed

In the reported period, Summit Therapeutics had received an upfront payment of £32.9 million, as part of the exclusive collaboration and license agreement entered into with Sarepta Therapeutics Inc. (NASDAQ: SRPT). Of the said amount, the Company recognized £576 thousand as revenues for Q3 FY16, while it had not recognized any revenue during Q3 FY15. During Q3 FY16, the Company's research and development expenses declined to £3.96 million ($4.83 million) from £4.50 million, primarily due to completion of CoDIFy Phase 2 clinical trial of ridinilazole. Furthermore, general and administration expenses for Q3 FY16 were £1.91 million ($2.33 million) compared to £1.30 million in Q3 FY15.

For the year ended October 31, 2016, the Company's total operating expenses came in at £5.86 million ($7.16 million) compared to £5.80 million in the prior year's comparable period. Furthermore, the Company reported operating loss of £5.29 million ($6.45 million) in Q3 FY16 versus operating loss of £5.48 million in the year ended October 31, 2015.

The drug discovery and development Company's Q3 FY16 total comprehensive loss narrowed down to £4.55 million ($5.77 million) from £5.30 million in the year ago same period. The Company's diluted loss from operations was £0.08 ($0.09) per ordinary share versus diluted loss from operations of £0.09 per ordinary share. Furthermore, Wall Street had expected the Company to report diluted loss from operations of $0.06 per ordinary share.

Agreement with Sarepta

In October 2016, Summit Therapeutics entered into exclusive collaboration and license agreement with Sarepta Therapeutics. As per the agreement, Sarepta Therapeutics was granted rights to Summit's utrophin modulator pipeline in the European Union, Switzerland, Norway, Iceland, Turkey and the Commonwealth of Independent States, with an option for Latin American rights. However, Summit Therapeutics retained commercialization rights in all other countries, including the key markets of the US and Japan.

Under terms of the agreement, Summit Therapeutics received an upfront payment and will be eligible for future ezutromid-related development, regulatory, and sales milestone payments totaling up to $522 million. Furthermore, Summit Therapeutics and Sarepta Therapeutics will also share at a 55% and 45% split specified global research and development costs related to ezutromid and future generation utrophin modulators, starting in 2018.

Cash Flow & Balance Sheet

In the nine months ended on October 31, 2016, net cash generated from operating activities was £17.93 million ($21.90 million) compared to net cash used by operating activities £11.18 million in the prior year's corresponding period. The Company had cash and cash equivalents balance of £34.63 million ($42.29 million) as on October 31, 2016, compared to £16.30 million, at the close of books on January 31, 2016.

Stock Performance

At the close of trading session on Friday, December 23, 2016, Summit Therapeutics' stock price dropped 1.75% to end the day at $8.44. A total volume of 27.86 thousand shares were exchanged during the session. The company's share price has gained 3.56% in the past six months. The stock currently has a market cap of $521.72 million.

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SOURCE: Active Wall Street