Drug developer Summit Therapeutics PLC (LON:SMMT) will effectively secure its financial future with a fully underwritten issue of stock that could bring in as much as US$20mln.
The AIM-listed firm, which is also quoted on the NASDAQ exchange, is issuing 1.459mln new American depositary shares at US$12 each, bringing in a minimum of US$17.5mln.
A further 218,850 units are available to meet excess demand, which would take the total to US$20.1mln.
Canaccord Genuity and JMP Securities are leading the American fundraiser, while Lansdowne Partners, one of Europe’s largest hedge funds, has come in as a cornerstone investor.
US funding boost
The injection of investor cash follows news last week Summit had secured a funding package of US$62mln from US authorities to bankroll the development of its next-generation antibiotic, Ridinilazole.
Earlier this year it received a US$22mln milestone payment from the US biotech Sarepta related the progress of Ezutromid, its treatment for Duchenne Muscular Dystrophy (DMD), a rare muscle-wasting disease that affects boys.
Ezutromid recently completed enrolment for its PhaseOut phase II clinical trial, which triggered the payment from partner Sarepta.
The study recruited 40 patients in the US and UK and will take 48 weeks to complete.
Researchers will assess how it affects muscle structure, health and function.
Data from the half-way stage is expected in the first quarter of next year with the trial set to close in the third quarter.
Ridinilazole, meanwhile, could be a blockbuster for the company as well as providing a breakthrough against antibiotic resistance.
It is thought to be effective against multiple different strains of the difficult-to-treat infection c.difficile (CDI).
It is also believed to be superior to existing medications such as vancomycin and metronidazole.
“We believe ridinilazole can become a new, urgently needed frontline therapy for this serious infectious disease,” said chief executive Glyn Edwards said recently