TIDMSUMM 
 
   Summit Therapeutics plc 
 
   ('Summit', the 'Company' or the 'Group') 
 
   Summit Therapeutics Reports Financial Results and Operational Progress 
for the Third Quarter and Nine Months Ended 31 October 2019 
 
   Oxford, UK, and Cambridge, MA, US, 17 December 2019 - Summit 
Therapeutics plc (NASDAQ: SMMT, AIM: SUMM) today reports its financial 
results and provides an update on its operational progress for the third 
quarter and nine months ended 31 October 2019. 
 
   "Our enthusiasm for ridinilazole continues to grow. Phase 2 clinical 
data presented this past quarter showed ridinilazole had significant 
improvements in patient quality of life measures and preservation of the 
gut microbiome compared to the current standard of care. These findings 
reinforce our belief that ridinilazole could provide better overall 
clinical, physical and mental outcomes for patients with C. difficile 
infection," said Glyn Edwards, Chief Executive Officer of Summit. "We 
were also pleased to announce recently the proposed $50 million 
investment into Summit that will primarily be used to support the 
ongoing Phase 3 clinical programme and commercial preparatory activities 
for ridinilazole. We look forward to continuing to advance ridinilazole 
through our landmark Phase 3 clinical trials that remain on track to 
report results in the second half of 2021." 
 
   Ridinilazole for C. difficile Infection ('CDI') 
 
 
   -- Ri-CoDIFy Phase 3 landmark clinical trials aim to support registration of 
      the precision antibiotic ridinilazole in the US and other territories, 
      and its adoption as a first-line treatment for CDI by: 
 
 
   1. showing superiority over the current standard of care, vancomycin, using 
      a composite endpoint measuring sustained clinical response; 
 
   2. generating health economic data to help support ridinilazole's commercial 
      launch, if approved; and 
 
   3. undertaking deep microbiome analyses to evaluate ridinilazole's 
      preservation of the gut microbiome. 
 
 
   -- The Phase 3 clinical programme remains on track for expected reporting of 
      top-line data in the second half of 2021. The trials had enrolled a total 
      of 128 patients as at the end of November 2019 with over two thirds of 
      the 300 planned clinical trials sites having been opened. 
 
   -- Reported new Phase 2 clinical trial data that showed ridinilazole 
      improved patients' quality of life compared to vancomycin, including 
      statistically significant improvements in measurements of physical and 
      mental health. Additional data from the Phase 2 clinical trial provided 
      mechanistic insights into how ridinilazole preserved the diversity of the 
      gut microbiome in patients with CDI to maintain the balance of the 
      metabolome of active chemicals made or modified by gut bacteria that help 
      prevent C. difficile recurrence. These new results were reported at the 
      ID Week Conference held in Washington DC in October 2019. 
 
   -- Commercial and medical affairs hires have been made in the United States 
      to support work to prepare for a potential launch and to secure future 
      market access for ridinilazole, if approved. 
 
 
   Discuva Platform 
 
   Enterobacteriaceae 
 
 
   -- DDS-04 compound series is a new class of antibiotics in lead optimisation 
      that acts via the novel bacterial target LolCDE with the potential to 
      treat infections caused by the Gram-negative bacteria, 
      Enterobacteriaceae. 
 
   -- In vivo proof of concept has been demonstrated with a DDS-04 series 
      compound in pneumonia, sepsis and urinary tract infection ('UTI'). Data 
      from all three disease models were presented at the ASM / ESCMID 
      Conference held in September. 
 
 
   Gonorrhoea 
 
 
   -- The focus of the gonorrhoea programme has shifted from SMT-571 to related 
      compounds as part of ongoing preclinical studies as the Company seeks to 
      bring an optimal clinical candidate forward. The lead optimisation work 
      is being supported by an award of up to $4.5 million from CARB-X. 
 
 
   Corporate Highlights 
 
 
   -- A proposed fundraising of approximately $50 million through a 
      subscription and placing of new ordinary shares and warrants to existing 
      investors (the 'Fundraising') was announced on 6 December 2019. The 
      Fundraising requires approval by shareholders at a general meeting of the 
      Company to be held on 23 December 2019. If the Fundraising is completed, 
      the net proceeds, together with the Company's existing cash resources and 
      funding agreements, are expected to extend its cash runway to 31 January 
      2021. 
 
   -- Conditional on the Fundraising being completed, the board of directors 
      will be restructured to support preparations for the potential commercial 
      launch of ridinilazole for the treatment of CDI. Specifically, 
      conditional on the Fundraising being completed, Mr Robert W. Duggan, Mr 
      Manmeet Soni, Dr Elaine Stracker and Dr Ventzislav Stefanov were 
      appointed as non-executive directors, and Dr Frank Armstrong, Mr Leopoldo 
      Zambeletti and Mr David Wurzer are stepping down from the board of 
      directors. Mr Glyn Edwards will take the role of Chairman in addition to 
      his existing role as Chief Executive Officer. 
 
   -- As a condition of the Fundraising, it is proposed that the admission of 
      the Company's ordinary shares to trading on AIM will be cancelled ('AIM 
      Delisting') with effect from 7.00 am on 24 February 2020. The Company's 
      American Depositary Shares ('ADSs') will remain listed on the Nasdaq 
      Stock Market where one ADS is represented by five ordinary shares. The 
      proposed AIM Delisting reflects the increasing focus of Summit's business 
      operations on the United States, and specifically the Company's plans to 
      commercialise ridinilazole in the United States with its own specialised 
      sales force, if approved. 
 
 
   Financial Highlights 
 
 
   -- Cash and cash equivalents at 31 October 2019 of GBP13.6 million compared 
      to GBP26.9 million at 31 January 2019. Cash position does not include the 
      proposed Fundraising of approximately $50 million announced on 6 December 
      2019 (see Corporate Highlights above for further details). 
 
   -- Loss for the three months ended 31 October 2019 of GBP7.0 million 
      compared to a loss of GBP8.1 million for the three months ended 
      31 October 2018. 
 
   -- The Company today announces that it has changed its accounting reference 
      date from 31 January to 31 December with immediate effect. 
 
 
   This announcement contains inside information for the purposes of 
Article 7 of EU Regulation 596/2014 (MAR). 
 
   About Summit Therapeutics 
 
   Summit Therapeutics is a leader in antibiotic innovation. Our new 
mechanism antibiotics are designed to become the new standards of care 
for the benefit of patients and create value for payors and healthcare 
providers. We are currently developing new mechanism antibiotics to 
treat infections caused by C. difficile, N. gonorrhoeae and 
Enterobacteriaceae and are using our proprietary Discuva Platform to 
expand our pipeline. For more information, visit www.summitplc.com and 
follow us on Twitter @summitplc. 
 
   For more information: 
 
 
 
 
Summit 
 Glyn Edwards / Richard Pye (UK office)      Tel: +44 (0)1235 443 951 
 Michelle Avery (US office)                  +1 617 225 4455 
Cairn Financial Advisers LLP (Nominated    Tel: +44 (0)20 7213 0880 
 Adviser) 
 Liam Murray / Tony Rawlinson / Ludovico 
 Lazzaretti 
N+1 Singer (Joint Broker)                  Tel: +44 (0)20 7496 3000 
 Aubrey Powell / George Tzimas, Corporate 
 Finance 
 Tom Salvesen, Corporate Broking 
Bryan Garnier & Co Limited (Joint Broker)  Tel: +44 (0)20 7332 2500 
 Phil Walker / Dominic Wilson 
MSL Group (US)                             Tel: +1 781 684 6552 
 Erin Anthoine                              summit@mslgroup.com 
                                           --------------------------- 
Consilium Strategic Communications (UK)    Tel: +44 (0)20 3709 5700 
 Mary-Jane Elliott / Sue Stuart /           summit@consilium-comms.com 
 Sukaina Virji / Lindsey Neville 
                                           --------------------------- 
 
 
   Forward Looking Statements 
 
   Any statements in this press release about the Company's future 
expectations, plans and prospects, including but not limited to, whether 
or not the Company will consummate the Fundraising, the restructuring of 
the board of directors, the AIM Delisting, the trading markets for the 
Company's ordinary shares and ADSs, statements about the potential 
benefits and future operation of the BARDA or CARB-X contract, including 
any potential future payments thereunder, the clinical and preclinical 
development of the Company's product candidates, the therapeutic 
potential of the Company's product candidates, the potential of the 
Discuva Platform, the potential commercialisation of the Company's 
product candidates, the sufficiency of the Company's cash resources, the 
timing of initiation, completion and availability of data from clinical 
trials, the potential submission of applications for marketing approvals 
and other statements containing the words "anticipate," "believe," 
"continue," "could," "estimate," "expect," "intend," "may," "plan," 
"potential," "predict," "project," "should," "target," "would," and 
similar expressions, constitute forward-looking statements within the 
meaning of The Private Securities Litigation Reform Act of 1995. Actual 
results may differ materially from those indicated by such 
forward-looking statements as a result of various important factors, 
including: the risk that the Company's shareholders do not approve the 
Fundraising and AIM Delisting, the risk that other closing conditions to 
the Fundraising are not satisfied, the ability of BARDA or CARB-X to 
terminate the Company's contract for convenience at any time, the 
uncertainties inherent in the initiation of future clinical trials, 
availability and timing of data from ongoing and future preclinical 
studies and clinical trials and the results of such preclinical studies 
and clinical trials, whether preliminary results from a clinical trial 
will be predictive of the final results of that trial or whether results 
of early clinical trials or preclinical studies will be indicative of 
the results of later clinical trials, expectations for regulatory 
approvals, laws and regulations affecting government contracts, 
availability of funding sufficient for the Company's foreseeable and 
unforeseeable operating expenses and capital expenditure requirements 
and other factors discussed in the "Risk Factors" section of filings 
that the Company makes with the Securities and Exchange Commission, 
including the Company's Annual Report on Form 20-F for the fiscal year 
ended 31 January 2019. Accordingly, readers should not place undue 
reliance on forward-looking statements or information. In addition, any 
forward-looking statements included in this press release represent the 
Company's views only as of the date of this release and should not be 
relied upon as representing the Company's views as of any subsequent 
date. The Company specifically disclaims any obligation to update any 
forward-looking statements included in this press release. 
 
   FINANCIAL REVIEW 
 
   Other Operating Income 
 
   Other operating income was GBP3.8 million for the three months ended 31 
October 2019, as compared to GBP2.8 million for the three months ended 
31 October 2018. Other operating income was GBP12.8 million for the nine 
months ended 31 October 2019, as compared to GBP9.0 million for the nine 
months ended 31 October 2018. These increases resulted primarily from 
the recognition of operating income from Summit's funding contract with 
BARDA for the development of ridinilazole, which was GBP3.6 million for 
the three months ended 31 October 2019 as compared to GBP2.2 million for 
the three months ended 31 October 2018 and GBP11.7 million for the nine 
months ended 31 October 2019 as compared to GBP7.5 million for the nine 
months ended 31 October 2018. As of 31 October 2019, an aggregate of 
GBP26.6 million ($34.3 million) of the total committed BARDA funding of 
$53.6 million has been recognised. 
 
   The Group also recognised operating income related to the CARB-X award 
supporting the development of the Company's gonorrhoea programme of 
GBP0.2 million during the three months ended 31 October 2019 as compared 
to GBP0.1 million for the three months ended 31 October 2018 and GBP0.6 
million during the nine months ended 31 October 2019 as compared to 
GBP0.3 million for the nine months ended 31 October 2018. 
 
   Revenue 
 
   Revenue was GBP0.1 million for the three months ended 31 October 2019 
compared to GBP0.7 million for the three months ended 31 October 2018. 
Revenue was GBP0.5 million for the nine months ended 31 October 2019 
compared to GBP42.5 million for the nine months ended 31 October 2018. 
 
   Revenue of GBP0.1 million recognised during the three months ended 31 
October 2019 and GBP0.4 million recognised during the nine months ended 
31 October 2019 related to the receipt of a $2.5 million (GBP1.9 
million) upfront payment in respect of the licence and commercialisation 
agreement signed with Eurofarma Laboratórios SA in December 2017 
for the exclusive right to commercialise ridinilazole in specified Latin 
American and Caribbean countries. 
 
   The decreases in revenue recognised are principally due to the reduction 
in revenue related to the Sarepta licence and collaboration agreement 
for the treatment of Duchenne muscular dystrophy ('DMD'). Revenue 
relating to the cost-share arrangement under the Sarepta agreement 
recognised during the three months ended 31 October 2019 amounted to 
GBPnil and during the nine months ended 31 October 2019 amounted to 
GBP0.1 million, as compared to total revenues relating to the upfront 
payment, development milestone payment and cost-share arrangement 
recognised during the three months ended 31 October 2018 of GBP0.6 
million and during the nine months ended 31 October 2018 of GBP41.9 
million. The agreement with Sarepta was terminated, effective August 
2019, with no material ongoing obligations for either party. 
 
   Operating Expenses 
 
   Research and Development Expenses 
 
   Research and development expenses decreased by GBP1.0 million to GBP7.2 
million for the three months ended 31 October 2019 from GBP8.2 million 
for the three months ended 31 October 2018. Research and development 
expenses decreased by GBP4.9 million to GBP24.7 million for the nine 
months ended 31 October 2019 from GBP29.6 million for the nine months 
ended 31 October 2018. These decreases primarily reflect decreases in 
clinical programme costs pertaining to the historical DMD programme. 
 
   Expenses related to the CDI programme increased by GBP4.2 million to 
GBP16.9 million for the nine months ended 31 October 2019 from GBP12.7 
million for the nine months ended 31 October 2018. This increase 
primarily related to clinical operations and supply manufacturing 
activities related to the ongoing Ri-CoDIFy Phase 3 clinical trials of 
ridinilazole that commenced in February 2019. 
 
   Investment in the Group's preclinical antibiotic pipeline was GBP2.0 
million for the nine months ended 31 October 2019 compared to GBP1.1 
million for the nine months ended 31 October 2018. This increase 
primarily related to preclinical development activities for DDS-04 
series for the treatment of Enterobacteriaceae infections and the 
gonorrhoea programme. 
 
   Expenses related to the DMD programme decreased to GBP0.2 million for 
the nine months ended 31 October 2019 from GBP8.6 million for the nine 
months ended 31 October 2018. The Group does not expect to incur further 
significant costs for this programme. 
 
   Other research and development expenses decreased by GBP1.7 million to 
GBP5.6 million during the nine months ended 31 October 2019 as compared 
to GBP7.3 million during the nine months ended 31 October 2018, which 
was driven by a decrease in staffing and facility costs. 
 
   General and Administration Expenses 
 
   General and administration expenses decreased by GBP0.3 million to 
GBP4.4 million for the three months ended 31 October 2019 from GBP4.7 
million for the three months ended 31 October 2018. General and 
administration expenses decreased by GBP2.1 million to GBP7.2 million 
for the nine months ended 31 October 2019 from GBP9.3 million for the 
nine months ended 31 October 2018. These decreases were driven primarily 
by the non-cash charge for the acceleration of share-based payment 
expense resulting from the surrender of share options offset by a net 
positive movement in exchange rate variances accounted for in the 
comparative periods. 
 
   Finance Costs 
 
   Finance costs recognised during the three and nine months ended 31 
October 2019 relate to lease liability interest payable and the 
unwinding of the discount associated with provisions. Finance costs were 
GBP0.1 million for the three months ended 31 October 2019 compared to 
GBP0.1 million for the three months ended 31 October 2018. Finance costs 
were GBP0.2 million for the nine months ended 31 October 2019 compared 
to GBP0.4 million for the nine months ended 31 October 2018. This 
decrease relates to the cessation of the unwinding of the discount 
following the remeasurement in June 2018 of the financial liabilities on 
funding arrangements for the historical DMD programme. 
 
   Taxation 
 
   The income tax credit for the three months ended 31 October 2019 was 
GBP0.7 million as compared to GBP1.3 million for the three months ended 
31 October 2018. The income tax credit for the nine months ended 31 
October 2019 was GBP2.6 million as compared to GBP1.7 million for the 
nine months ended 31 October 2018. The Group's current net tax credit 
for the periods reflects the accrued UK research and development tax 
credit based on management's estimate of the qualifying expenditure 
relating to research and development activities carried out by the Group, 
the taxes relating to the US operations and the release of deferred tax 
liabilities associated with the amortisation of intangible assets. 
 
   Losses 
 
   Loss before income tax was GBP7.8 million for the three months ended 31 
October 2019 compared to a loss before income tax of GBP9.4 million for 
the three months ended 31 October 2018. Loss before income tax was 
GBP18.8 million for the nine months ended 31 October 2019 compared to a 
profit before income tax of GBP10.9 million for the nine months ended 31 
October 2018. 
 
   Net loss for the three months ended 31 October 2019 was GBP7.0 million 
with a basic loss per share of 4 pence compared to a net loss of GBP8.1 
million for the three months ended 31 October 2018 with a basic loss per 
share of 10 pence. Net loss for the nine months ended 31 October 2019 
was GBP16.2 million with a basic loss per share of 10 pence compared to 
a net profit of GBP12.7 million for the nine months ended 31 October 
2018 with a basic earnings per share of 16 pence. 
 
   The profits recorded during the nine months ended 31 October 2018 were 
due to the recognition of all remaining deferred revenue related to the 
Sarepta agreement. 
 
   Cash Flows 
 
   The Group had a net cash outflow of GBP13.7 million for the nine months 
ended 31 October 2019 as compared to a net cash outflow of GBP8.2 
million for the nine months ended 31 October 2018. 
 
   Operating Activities 
 
   For the nine months ended 31 October 2019, net cash used in operating 
activities was GBP13.2 million compared to GBP22.1 million for the nine 
months ended 31 October 2018. This positive movement of GBP8.9 million 
was driven by an increase in cash received from licensing agreements and 
funding arrangements of GBP0.8 million, an increase in taxation cash 
inflows of GBP5.4 million due to the timing of receipt of the Group's 
research and development tax credits receivable on qualifying 
expenditure in respect of financial years ended 31 January 2017, 2018 
and 2019, and a decrease in operating costs of GBP10.2 million as a 
result of the Group's decision to discontinue development of ezutromid. 
 
   Investing Activities 
 
   Net cash used in investing activities was GBP0.2 million for the nine 
months ended 31 October 2019 as compared to GBP0.1 million for the nine 
months ended 31 October 2018. Net cash used in investing activities for 
the nine months ended 31 October 2019 includes amounts paid to acquire 
property, plant and equipment and intangible assets, offset by bank 
interest received on cash deposits. 
 
   Financing Activities 
 
   Net cash used in financing activities for the nine months ended 31 
October 2019 of GBP0.3 million primarily relates to lease liability 
repayments. Net cash generated from financing activities for the nine 
months ended 31 October 2018 of GBP14.0 million was primarily driven by 
GBP14.1 million of proceeds, net of transaction costs, received 
following the Group's equity placing in March 2018. 
 
   Financial Position and Cash Runway Guidance 
 
   As at 31 October 2019, total cash and cash equivalents held were GBP13.6 
million (31 January 2019: GBP26.9 million). 
 
   On 6 December 2019, the Group announced a proposed Fundraising of 
approximately $50 million which is subject to certain shareholder 
approvals being obtained at a general meeting to be held on 23 December 
2019. Please see Note 1 for further details should the Group not receive 
shareholder approval. If shareholder approval is obtained, the net 
proceeds of the Fundraising, together with the Group's existing cash 
resources and funding agreements, are expected to extend its cash runway 
to 31 January 2021. 
 
 
 
 
Glyn Edwards 
Chief Executive Officer 
17 December 2019 
 
 
 
 
 
   FINANCIAL STATEMENTS 
 
   Condensed Consolidated Statement of Comprehensive Income (unaudited) 
 
   For the three months ended 31 October 2019 
 
 
 
 
                                                      Three months    Three months   Three months 
                                                          ended           ended       ended 
                                                       31 October      31 October     31 October 
                                                          2019            2019        2018 
                                                                                     (Adjusted*) 
                                              Note       $000s          GBP000s             GBP000s 
 
Revenue                                                    160             124             675 
 
Other operating income                                   4,881           3,772           2,825 
 
Operating expenses 
   Research and development                             (9,347)         (7,224)         (8,195) 
   General and administration                           (5,650)         (4,367)         (4,654) 
Total operating expenses                               (14,997)        (11,591)        (12,849) 
---------------------------------------------------  ---------       ---------       --------- 
Operating (loss)                                        (9,956)         (7,695)         (9,349) 
 
Finance income                                               1               1              -- 
Finance costs                                              (82)            (63)            (60) 
(Loss) before income tax                               (10,037)         (7,757)         (9,409) 
 
Income tax                                                 941             727           1,275 
(Loss) for the period                                   (9,096)         (7,030)         (8,134) 
 
Other comprehensive (loss) / income 
Items that may be reclassified subsequently 
 to profit or loss 
Exchange differences on translating 
 foreign operations                                        (21)            (16)              6 
Total comprehensive (loss) for the 
 period                                                 (9,117)         (7,046)         (8,128) 
 
Basic and diluted (loss) per ordinary           2      (5) cents       (4) pence       (10) pence 
 share from operations 
 
 
   * See Note 1 - 'Basis of Accounting - Adoption of IFRS 16 'Leases" 
 
   Condensed Consolidated Statement of Comprehensive Income (unaudited) 
 
   For the nine months ended 31 October 2019 
 
 
 
 
                                                      Nine months    Nine months   Nine months 
                                                         ended          ended       ended 
                                                       31 October     31 October    31 October 
                                                          2019           2019       2018 
                                                                                   (Adjusted*) 
                                              Note       $000s         GBP000s           GBP000s 
 
Revenue                                                   646            499         42,507 
 
Other operating income                                 16,533         12,778          8,979 
 
Operating expenses 
   Research and development                           (31,976)       (24,713)       (29,640) 
   General and administration                          (9,350)        (7,226)        (9,309) 
   Impairment of goodwill and intangible 
    assets                                                 --             --         (3,986) 
Total operating expenses                              (41,326)       (31,939)       (42,935) 
--------------------------------------------------- 
Operating (loss) / profit                             (24,147)       (18,662)         8,551 
 
Finance income                                              4              3          2,786 
Finance costs                                            (241)          (186)          (410) 
(Loss) / profit before income tax                     (24,384)       (18,845)        10,927 
 
Income tax                                              3,404          2,631          1,730 
(Loss) / profit for the period                        (20,980)       (16,214)        12,657 
 
Other comprehensive income 
Items that may be reclassified subsequently 
 to profit or loss 
Exchange differences on translating 
 foreign operations                                         6              5             25 
Total comprehensive (loss) / profit 
 for the period                                       (20,974)       (16,209)        12,682 
 
Basic and diluted (loss) / earnings             2     (13) cents     (10) pence      16 pence 
 per ordinary share from operations 
 
 
   * See Note 1 - 'Basis of Accounting - Adoption of IFRS 16 'Leases" 
 
   Condensed Consolidated Statement of Financial Position (unaudited) 
 
   As at 31 October 2019 
 
 
 
 
                                        31 October  31 October  31 January 
                                           2019        2019      2019 
                                                                (Adjusted*) 
                                          $000s      GBP000s    GBP000s 
ASSETS 
Non-current assets 
Goodwill                                    2,347       1,814       1,814 
Intangible assets                          13,049      10,085      10,604 
Property, plant and equipment               1,594       1,232       1,540 
                                           16,990      13,131      13,958 
Current assets 
Trade and other receivables                11,583       8,953      13,491 
Current tax receivable                      4,740       3,663       6,328 
Cash and cash equivalents                  17,600      13,602      26,858 
                                           33,923      26,218      46,677 
 -------------------------------------  ---------   ---------   --------- 
Total assets                               50,913      39,349      60,635 
 
LIABILITIES 
Non-current liabilities 
Lease liabilities                            (523)       (404)       (647) 
Deferred revenue                             (591)       (457)       (831) 
Provisions for other liabilities and 
 charges                                   (2,603)     (2,012)     (1,851) 
Deferred tax liability                     (2,046)     (1,581)     (1,675) 
                                           (5,763)     (4,454)     (5,004) 
Current liabilities 
Trade and other payables                   (9,341)     (7,220)     (8,733) 
Lease liabilities                            (463)       (358)       (358) 
Deferred revenue                             (485)       (375)     (3,374) 
Contingent consideration                     (104)        (80)       (629) 
                                          (10,393)     (8,033)    (13,094) 
Total liabilities                         (16,156)    (12,487)    (18,098) 
Net assets                                 34,757      26,862      42,537 
 
EQUITY 
Share capital                               2,077       1,605       1,604 
Share premium account                     120,082      92,806      92,806 
Share-based payment reserve                 1,560       1,206       1,148 
Merger reserve                              3,917       3,027       3,027 
Special reserve                            25,869      19,993      19,993 
Currency translation reserve                   79          61          56 
Accumulated losses reserve               (118,827)    (91,836)    (76,097) 
Total equity                               34,757      26,862      42,537 
--------------------------------------  ---------               --------- 
 
 
   * See Note 1 - 'Basis of Accounting - Adoption of IFRS 16 'Leases" 
 
   Condensed Consolidated Statement of Cash Flows (unaudited) 
 
   For the nine months ended 31 October 2019 
 
 
 
 
                                                   Nine months    Nine months   Nine months 
                                                      ended          ended       ended 
                                                    31 October     31 October    31 October 
                                                       2019           2019       2018 
                                                                                (Adjusted*) 
                                                      $000s         GBP000s     GBP000s 
Cash flows from operating activities 
(Loss) / profit before income tax                  (24,384)       (18,845)        10,927 
                                                   (24,384)       (18,845)        10,927 
Adjusted for: 
Gain on re-measurement of financial 
 liabilities on funding arrangements                    --             --           (539) 
Loss on recognition of contingent consideration 
 payable                                                --             --                 860 
Finance income                                          (4)            (3)        (2,786) 
Finance costs                                          241            186            410 
Foreign exchange gain                                 (133)          (103)        (1,056) 
Depreciation                                           554            428            483 
Amortisation of intangible fixed assets                805            622            622 
Loss on disposal of assets                              13             10             24 
Research and development expenditure 
 credit                                                 --             --           (156) 
Impairment of goodwill and intangible 
 assets                                                 --             --          3,986 
Share-based payment                                    690            533          4,263 
Adjusted (loss) / profit from operations 
 before changes in working capital                 (22,218)       (17,172)        17,038 
 
Decrease / (increase) in prepayments 
 and other receivables                               5,417          4,186         (1,654) 
Decrease in deferred revenue                        (4,365)        (3,374)       (33,973) 
Decrease in trade and other payables                (2,323)        (1,796)        (3,719) 
Cash used in operations                            (23,489)       (18,156)       (22,308) 
 
Contingent consideration paid                         (710)          (549)            -- 
Taxation received                                    6,902          5,334            172 
RDEC credit received                                   211            163             -- 
Net cash used in operating activities              (17,086)       (13,208)       (22,136) 
------------------------------------------------                                -------- 
 
Investing activities 
Purchase of property, plant and equipment             (167)          (129)           (56) 
Purchase of intangible assets                         (133)          (103)            (5) 
Interest received                                        4              3              3 
Net cash used in investing activities                 (296)          (229)           (58) 
------------------------------------------------  --------       --------       -------- 
 
Financing activities 
Proceeds from issue of share capital                    --             --         15,000 
Transaction costs on share capital issued               --             --           (858) 
Proceeds from exercise of share options                  1              1            102 
Repayment of lease liabilities                        (346)          (268)          (240) 
Net cash (used in) / generated from 
 financing activities                                 (345)          (267)        14,004 
 
Decrease in cash and cash equivalents              (17,727)       (13,704)        (8,190) 
Effect of exchange rates in cash and 
 cash equivalents                                      575            448          1,132 
Cash and cash equivalents at beginning 
 of the period                                      34,752         26,858         20,102 
Cash and cash equivalents at end of 
 the period                                         17,600         13,602         13,044 
------------------------------------------------  --------  ---  --------  ---  --------  --- 
 
 
   * See Note 1 - 'Basis of Accounting - Adoption of IFRS 16 'Leases" 
 
   Condensed Consolidated Statement of Changes in Equity (unaudited) 
 
   Nine months ended 31 October 2019 
 
 
 
 
                                         Share     Share-based                         Currency     Accumulated 
                               Share     premium     payment      Merger   Special    translation      losses 
                               capital   account     reserve      reserve   reserve     reserve       reserve          Total 
Group                          GBP000s   GBP000s     GBP000s      GBP000s   GBP000s     GBP000s       GBP000s        GBP000s 
At 31 January 2019 
 (as previously reported)        1,604    92,806    1,148           3,027    19,993            56   (76,092)       42,542 
Change in accounting 
 policy (full retrospective 
 application IFRS 16)               --        --       --              --        --            --        (5)           (5) 
At 31 January 2019 
 (Adjusted*)                     1,604    92,806    1,148           3,027    19,993            56   (76,097)       42,537 
----------------------------  --------  --------  -------  ----  --------  --------  ------------  --------       ------- 
Loss for the period                 --        --       --              --        --            --   (16,214)      (16,214) 
Currency translation 
 adjustment                         --        --       --              --        --             5        --             5 
Total comprehensive 
 loss for the period                --        --       --              --        --             5   (16,214)      (16,209) 
Share options exercised              1        --       --              --        --            --        --             1 
Share-based payment                 --        --      533              --        --            --        --           533 
Share-based payment 
 reserve transfer                   --        --     (475)             --        --            --       475            -- 
At 31 October 2019               1,605    92,806    1,206           3,027    19,993            61   (91,836)       26,862 
                              --------  --------  -------  ----  --------  --------  ------------  --------       ------- 
 
 
   Year ended 31 January 2019 
 
 
 
 
                                         Share     Share-based                         Currency     Accumulated 
                               Share     premium     payment      Merger   Special    translation      losses 
                               capital   account     reserve      reserve   reserve     reserve       reserve          Total 
Group                          GBP000s   GBP000s     GBP000s      GBP000s   GBP000s     GBP000s       GBP000s        GBP000s 
At 31 January 2018 
 (as previously reported)          736   60,237      6,743          3,027    19,993            37   (93,957)       (3,184) 
Change in accounting 
 policy (full retrospective 
 application IFRS 16)               --       --         --             --        --            --        32            32 
At 31 January 2018 
 (Adjusted*)                       736   60,237      6,743          3,027    19,993            37   (93,925)       (3,152) 
                              --------  -------   --------  ---  --------  --------  ------------  --------       ------- 
Profit for the year 
 (Adjusted*)                        --       --         --             --        --            --     7,490         7,490 
Currency translation 
 adjustment                         --       --         --             --        --            19        --            19 
Total comprehensive 
 profit for the period 
 (Adjusted*)                        --       --         --             --        --            19     7,490         7,509 
New share capital issued           864   33,784         --             --        --            --        --        34,648 
Transaction costs on 
 share capital issued               --   (1,313)        --             --        --            --        --        (1,313) 
Share options exercised              4       98         --             --        --            --        --           102 
Share-based payment                 --       --      4,743             --        --            --        --         4,743 
Share-based payment 
 reserve transfer                   --       --    (10,338)            --        --            --    10,338            -- 
At 31 January 2019 
 (Adjusted*)                     1,604   92,806      1,148          3,027    19,993            56   (76,097)       42,537 
 
 
   Nine months ended 31 October 2018 
 
 
 
 
                                         Share    Share-based                        Currency     Accumulated 
                               Share     premium    payment     Merger   Special    translation      losses 
                               capital   account    reserve     reserve   reserve     reserve       reserve          Total 
Group                          GBP000s   GBP000s    GBP000s     GBP000s   GBP000s     GBP000s       GBP000s        GBP000s 
At 31 January 2018 
 (as previously reported)          736   60,237         6,743     3,027    19,993            37   (93,957)       (3,184) 
Change in accounting 
 policy (full retrospective 
 application IFRS 16)               --       --            --        --        --            --        32            32 
At 31 January 2018 
 (Adjusted*)                       736   60,237         6,743     3,027    19,993            37   (93,925)       (3,152) 
----------------------------  --------  -------   -----------  --------  --------  ------------  --------       ------- 
Profit for the period 
 (Adjusted*)                        --       --            --        --        --            --    12,657        12,657 
Currency translation 
 adjustment                         --       --            --        --        --            25        --            25 
Total comprehensive 
 profit for the period 
 (Adjusted*)                        --       --            --        --        --            25    12,657        12,682 
New share capital issued            83   14,917            --        --        --            --        --        15,000 
Transaction costs on 
 share capital issued               --     (858)           --        --        --            --        --          (858) 
Share options exercised              4       98            --        --        --            --        --           102 
Share-based payment                 --       --         4,263        --        --            --        --         4,263 
At 31 October 2018 
 (Adjusted*)                       823   74,394        11,006     3,027    19,993            62   (81,268)       28,037 
                              --------  -------   -----------  --------  --------  ------------  --------       ------- 
 
 
   * See Note 1 - 'Basis of Accounting - Adoption of IFRS 16 'Leases" 
 
   The accompanying notes form an integral part of these condensed 
consolidated interim financial statements. 
 
 
 
 
 
   NOTES TO THE FINANCIAL INFORMATION 
 
   For the three and nine months ended 31 October 2019 
 
   1. Basis of Accounting 
 
   The unaudited condensed consolidated interim financial statements of 
Summit Therapeutics plc ('Summit' and the 'Company') and its 
subsidiaries (together, the 'Group') for the three and nine months ended 
31 October 2019 have been prepared in accordance with International 
Financial Reporting Standards ('IFRS') and International Financial 
Reporting Interpretations Committee ('IFRIC') interpretations as issued 
by the International Accounting Standards Board and with those parts of 
the Companies Act 2006 applicable to companies reporting under IFRS 
including those applicable to accounting periods ending 31 January 2020 
and the accounting policies set out in Summit's consolidated financial 
statements. There have been no changes to the accounting policies as 
contained in the annual consolidated financial statements as of and for 
the year ended 31 January 2019 other than as described below. These 
condensed consolidated interim financial statements do not include all 
information required for full statutory accounts within the meaning of 
section 434 of Companies Act 2006 and should be read in conjunction with 
the consolidated financial statements of the Group as at 31 January 2019 
(the '2019 Accounts'). The 2019 Accounts, on which the Company's 
auditors delivered an unqualified audit report, are available on the 
Group's website at www.summitplc.com and were delivered to the Registrar 
of Companies following the 2019 Annual General Meeting. The auditor's 
report did not contain any statement under section 498 of the Companies 
Act 2006 but did contain a statement from the auditors drawing the 
shareholders' attention to the Group's need to raise additional capital 
as noted below. 
 
   Whilst the financial information included in this announcement has been 
prepared in accordance with IFRS and IFRIC interpretations as issued by 
the International Accounting Standards Board and with those parts of the 
Companies Act 2006 applicable to companies reporting under IFRS, this 
announcement does not itself contain sufficient information to comply 
with IFRS. 
 
   The interim financial statements have been prepared assuming the Group 
will continue on a going concern basis. Based on management's forecasts, 
the Group's existing cash and cash equivalents, anticipated payments 
from BARDA under its contract for the development of ridinilazole and 
anticipated payments from CARB-X under its contract for the development 
of its gonorrhoea antibiotic programme are expected to be sufficient to 
enable the Group to fund its operating expenses and capital expenditure 
requirements through to at least 31 January 2020. 
 
   On 6 December 2019, the Group announced a proposed Fundraising of 
approximately $50 million through a subscription and placing of new 
ordinary shares and warrants to existing investors ('Fundraising'), 
which is subject to certain shareholder approvals being obtained at a 
general meeting to be held on 23 December 2019, and certain customary 
closing conditions being satisfied. If shareholder approval is obtained, 
the net proceeds of the Fundraising, together with the Group's existing 
cash resources and funding agreements, are expected to extend its cash 
runway to 31 January 2021. The Group expects to use these funds to 
support the continued Phase 3 clinical programme of ridinilazole for the 
treatment of CDI; preparatory activities to support commercial launch of 
ridinilazole, if approved; development of early-stage research projects; 
and general corporate purposes. Should the Company not receive 
shareholder approval, the Fundraising would not proceed and the Group 
would need to take immediate steps to preserve cash including, amongst 
others, stopping the ongoing Phase 3 clinical trials of ridinilazole and 
ceasing its Discuva Platform activities and associated research 
programmes. The failure of the Group to obtain the necessary shareholder 
approval to enable the proposed Fundraising to proceed would therefore 
have a material adverse effect on the Group's business, results of 
operations and financial condition. 
 
   These circumstances represent a material uncertainty which may cast and 
raise significant doubt on the Group's ability to continue as a going 
concern. The interim financial statements do not contain any adjustments 
that might result if the Group was unable to continue as a going 
concern. 
 
   The financial information for the three and nine month periods ended 31 
October 2019 and 2018 are unaudited. 
 
   Solely for the convenience of the reader, unless otherwise indicated, 
all pound sterling amounts stated in the Consolidated Statement of 
Financial Position as at 31 October 2019, the Consolidated Statement of 
Comprehensive Income for the three and nine months ended 31 October 2019 
and Consolidated Statement of Cash Flows for the nine months ended 31 
October 2019 have been translated into US dollars at the rate on 31 
October 2019 of $1.2939 to GBP1.00. These translations should not be 
considered representations that any such amounts have been, could have 
been or could be converted into US dollars at that or any other exchange 
rate as at that or any other date. 
 
   The Board of Directors of the Company approved this statement on 17 
December 2019. 
 
   Adoption of IFRS 16 'Leases' 
 
   IFRS 16 specifies how to recognise, measure, present and disclose 
leases. The standard provides a single lessee accounting model, 
requiring lessees to recognise assets and liabilities for all leases 
unless the lease term is 12 months or less or the underlying asset has a 
low value. The standard is effective for reporting periods beginning on 
or after 1 January 2019 and replaces the accounting standard IAS 17 
'Leases'. Two adoption methods are permitted for transition: 
retrospectively to all prior reporting periods presented in accordance 
with IAS 8 'Accounting Policies, Changes in Accounting Estimates and 
Errors', with certain practical expedients permitted; or retrospectively 
with the cumulative effect of initially applying the standard recognised 
at the date of initial application. 
 
   Accounting policy 
 
   At inception of a contract, the Group assesses whether a contract is, or 
contains, a lease based on whether the contract conveys the right to 
control the use of an identified asset for a period of time in exchange 
for consideration. The Group recognises a right-of-use asset within 
property, plant and equipment and a lease liability at the lease 
commencement date. The right-of-use asset is initially measured based on 
the initial amount of the lease liability adjusted for any lease 
payments made at or before the commencement date, plus any initial 
direct costs incurred and an estimate of costs to dismantle and remove 
the underlying asset or to restore the underlying asset or the site on 
which it is located, less any lease incentives received. The assets are 
depreciated to the earlier of the end of the useful life of the 
right-of-use asset or the lease term using the straight-line method. The 
lease term includes periods covered by an option to extend if the Group 
is reasonably certain to exercise that option and periods covered by an 
option to terminate if it is reasonably certain not to exercise that 
option. The lease liability is initially measured at the present value 
of the lease payments that are not paid at the commencement date, 
discounted using the interest rate implicit in the lease or, if that 
rate cannot be readily determined, the Group's incremental borrowing 
rate. The lease liability is subsequently measured at amortised cost 
using the effective interest method and is remeasured when there is a 
change in future contractual lease payments or if the Group changes its 
assessment of whether it will exercise a purchase, extension or 
termination option. 
 
   The Group adopted this new standard effective 1 February 2019, as 
required, using the full retrospective transition method in accordance 
with IAS 8 'Accounting Policies, Changes in Accounting Estimates and 
Errors'. Under this method, the Group will adjust its results for the 
years ended 31 January 2018 and 2019 and applicable interim periods, as 
if IFRS 16 had been effective for those periods. The Group has assessed 
the effect of adoption of this standard as it relates to its UK leased 
properties in Oxford and Cambridge and has concluded that any other 
contracts are not within the scope of IFRS 16 or are of low value, for 
which the Group has elected not to apply the requirement of IFRS 16. 
 
   Due to the adoption of IFRS 16, the Group has recognised both 
right-of-use assets and lease liabilities related to its UK leased 
properties. The Group no longer recognises a lease incentive accrual and 
has reclassified some costs from research and development expenses and 
general and administration expenses to finance costs, being the interest 
expense on lease liabilities. In addition, some amounts previously 
presented as cash outflows from operating activities in the Group's 
Consolidated Statement of Cash Flows are now presented as cash flows 
from investing or financing activities. 
 
   This change in accounting policy has been reflected retrospectively in 
the comparative Statement of Financial Position for the year ended 31 
January 2019, the comparative Statement of Comprehensive Income, 
Statement of Cash Flows and Statement of Changes in Equity for the nine 
months ended 31 October 2018, including the opening accumulated losses 
reserve at 1 February 2018 and 1 February 2019. 
 
   The impact of the change in accounting policy to IFRS 16 discussed above 
on the comparatives to the unaudited condensed consolidated interim 
financial statements is disclosed in the following tables. 
 
 
 
 
                                        Original     Adjusted 
                                        Year ended   Year ended 
Impact on Unaudited Condensed           31 January   31 January 
Consolidated                               2019         2019     Impact 
   Statement of Financial Position       GBP000s      GBP000s      GBP000s 
------------------------------------- 
Non-current assets 
Property, plant and equipment                 616        1,540      924 
Current assets 
Trade and other receivables                13,547       13,491      (56) 
Non-current liabilities 
Lease liabilities                              --         (647)    (647) 
Current liabilities 
Trade and other payables                   (8,865)      (8,733)     132 
Lease liabilities                              --         (358)    (358) 
Equity 
Accumulated losses reserve                (76,092)     (76,097)      (5) 
 
 
 
 
 
 
                                    Original       Adjusted 
                                   Three months   Three months 
                                      ended          ended 
Impact on Unaudited Condensed       31 October     31 October 
Consolidated                           2018           2018        Impact 
   Statement of Comprehensive 
   Income                            GBP000s        GBP000s        GBP000s 
-------------------------------- 
Operating expenses 
Research and development                (8,196)        (8,195)       1 
General and administration              (4,658)        (4,654)       4 
Operating loss                          (9,354)        (9,349)       5 
Finance costs                              (49)           (60)     (11) 
Loss for the period                     (8,128)        (8,134)      (6) 
--------------------------------  ------------   ------------   ------ 
 
 
 
 
 
 
                                      Original      Adjusted 
                                     Nine months   Nine months 
                                        ended         ended 
Impact on Unaudited Condensed        31 October    31 October 
Consolidated                            2018          2018        Impact 
   Statement of Comprehensive 
   Income                             GBP000s       GBP000s        GBP000s 
---------------------------------- 
Operating expenses 
Research and development                (29,634)      (29,640)      (6) 
General and administration               (9,319)       (9,309)      10 
Operating profit                          8,547         8,551        4 
Finance costs                              (377)         (410)     (33) 
Profit for the period                    12,686        12,657      (29) 
----------------------------------  -----------   -----------   ------ 
 
 
 
 
 
 
                                      Original      Adjusted 
                                     Nine months   Nine months 
                                        ended         ended 
Impact on Unaudited Condensed        31 October    31 October 
Consolidated                            2018          2018        Impact 
   Statement of Cash Flows            GBP000s       GBP000s     GBP000s 
Profit before income tax                 10,956        10,927       (29) 
Adjusted for: 
Finance costs                               377           410        33 
Depreciation                                233           483       250 
Increase in trade and other 
 receivables                             (1,661)       (1,654)        7 
Decrease in trade and other 
 payables                                (3,698)       (3,719)      (21) 
Financing activities 
Repayment of lease liabilities               --          (240)     (240) 
Impact on net cash flows                                             -- 
 
 
   The Group will continue to monitor interpretations released by the IFRS 
Interpretations Committee and amendments to IFRS 16 and will, as 
appropriate, adopt these from the effective dates. 
 
   2. (Loss) / earnings per Share Calculation 
 
   The calculation of (loss) / earnings per share is based on the following 
data: 
 
 
 
 
                                   Three months    Three months    Nine months   Nine months 
                                       ended           ended          ended       ended 
                                    31 October      31 October      31 October    31 October 
                                       2019            2018            2019       2018 
                                                   (Adjusted*)                   (Adjusted*) 
                                       000s            000s           000s                000s 
(Loss) / profit for the 
 period                              (7,030)        (8,134)        (16,214)           12,657 
 
Weighted average number 
 of ordinary shares for basic 
 (loss) / earnings per share        160,495         82,137         160,463            80,279 
Effect of dilutive potential 
 ordinary shares (share options 
 and warrants)                           --             --              --               527 
Weighted average number 
 of ordinary shares for diluted 
 (loss) / earnings per share        160,495         82,137         160,463            80,806 
 
Basic (loss) / earnings 
 per ordinary share from 
 operations GBP                       (0.04)         (0.10)          (0.10)             0.16 
Diluted (loss) / earnings 
 per ordinary share from 
 operations GBP                       (0.04)         (0.10)          (0.10)             0.16 
--------------------------------  ---------       --------   ---  --------       ----------- 
 
 
   * See Note 1 - 'Basis of Accounting - Adoption of IFRS 16 'Leases" 
 
   Basic (loss) / earnings per ordinary share has been calculated by 
dividing the (loss) / profit for the three and nine months ended 31 
October 2019 by the weighted average number of shares in issue during 
the three and nine months ended 31 October 2019. Diluted earnings per 
ordinary share has been calculated by adjusting the weighted average 
number of ordinary shares outstanding to assume conversion of all 
potentially dilutive ordinary shares. Potentially dilutive ordinary 
shares represent the number of shares that could have been acquired at 
fair value based on the monetary value of the subscription rights 
attached to share options in-the-money compared with the number of 
shares that would have been issued assuming the exercise of share 
options in-the-money. 
 
   IAS 33 'Earnings per Share' requires the presentation of diluted 
earnings per share where a company could be called upon to issue shares 
that would decrease net profit or loss per share. As the Group reported 
net losses for the three and nine months ended 31 October 2019, the 
weighted average number of ordinary shares outstanding used to calculate 
the diluted (loss) / earnings per ordinary share is the same as that 
used to calculate the basic (loss) / earnings per ordinary share, as the 
exercise of share options would have the effect of reducing loss per 
ordinary share which is not dilutive. 
 
   3. Issue of Share Capital 
 
   On 23 April 2019, 104,877 ordinary shares were issued following the 
exercise of restricted stock units ('RSUs'). This exercise of RSUs 
raised net proceeds of GBP1,049. 
 
   The new ordinary shares issued in connection with the RSUs exercised 
rank pari passu with existing ordinary shares. 
 
   As of 31 October 2019, the number of ordinary shares in issue was 
160,494,758. 
 
   4. Post Balance Sheet Events 
 
   On 6 December 2019, the Group announced a proposed Fundraising of 
approximately $50 million through a subscription of 166,157,050 new 
ordinary shares and a placing of 9,221,400 new ordinary shares at a 
subscription and placing price of 22.1 pence per new ordinary share 
('Fundraising'). The Fundraising requires approval by shareholders at a 
general meeting of the Company to be held on 23 December 2019. 
 
   As a condition of the proposed Fundraising, it is proposed that the 
admission of the Company's ordinary shares to trading on AIM will be 
cancelled ('AIM Delisting'). The Company's American Depositary Shares 
('ADSs') will remain listed on the Nasdaq Stock Market where one ADS is 
represented by five ordinary shares. The proposed AIM Delisting reflects 
the increasing focus of Summit's business operations on the United 
States, and specifically the Company's plans to commercialise 
ridinilazole in the United States with its own specialised sales force, 
if approved. 
 
   Should shareholders approve the AIM Delisting, the final day of trading 
on AIM of the ordinary shares is expected to be 21 February 2020. On 
that basis, the AIM Delisting would take effect at 7:00 am on 24 
February 2020. Thereafter, ordinary shares will continue to be capable 
of being held and transferred in certificated form, but there will be no 
public market in the UK on which shareholders will be able to trade 
ordinary shares with all public trading of securities in the Company 
taking place on Nasdaq by way of ADSs. 
 
   -END- 
 
 
 
 

(END) Dow Jones Newswires

December 17, 2019 07:00 ET (12:00 GMT)

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