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Summit Therapeutics Plc - Stock Valuation Undemanding

- Key inflection point: topline data readout from the PhaseOut DMD phase 2 trial in Duchenne (DMD) expected in 3Q 2018
- Imminent start of a pivotal phase 3 study for ridinilazole in C. difficile infections (CDI)
- Recent Discuva acquisition reinforces novel antibiotics discovery capabilities 
- Current valuation (market cap of c. $165 mln) undemanding given the stage and commercial potential of Summit's lead programs
Summit Therapeutics Plc - Stock Valuation Undemanding

 

With approx. $42 mln in cash as of the end of October 2017, Summit looks fully funded up until the end of 2018.

Current valuation (market cap $165 mln) seems undemanding, especially vis-à-vis the $900 mln valuation of recently listed Solid Biosciences, whose lead program is just about to start clinical development.

Full report is available via Capital Network website
View full SUMM profile View Profile

Summit Therapeutics PLC Timeline

Related Researches

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October 04 2017

Avacta’s FY 2017 Preliminary Results: Reagents and therapeutics programs all on track

KEY INVESTOR MESSAGES

  • Avacta’s Affimer® technology is a proprietary alternative to antibodies with key technical and commercial benefits
  • Avacta is building a pipeline of Affimer drugs for immuno-oncology and growing revenues based on a licensing model for Affimer reagents
  • Excellent progress in both parts of the business during the reporting period substantially de-risking the opportunity
  • A pipeline of potential valuable and licensable drugs is being built and the company is targeting first clinical trials in 2019
  • A sum-of-the-parts model now suggests an equity value four times the current market capitalisation

 

RESULTS SUMMARY

On the 4th October, Avacta Group Plc (LON:AVCT) has reported preliminary results for the fiscal year ending July 2017, including a detailed update on the business.

Overall Avacta Group Plc (LON:AVCT) is delivering according to management's guidance and has made significant progress in both the Affimer reagents' business and the Affimer therapeutics programs (please refer to our initiation report of March 2017 for an overview of Avacta's Affimer technology and business strategy).

As regards the Reagents business, Avacta Group Plc (LON:AVCT) announced in April 2017 that, after a trial period, they have granted a leading diagnostic company exclusive rights to specific Affimer reagents. Although financial details weren't disclosed, this was the first time that Avacta signed an agreement of this nature, representing an important inflection point in de-risking the reagents business.

As such we remove any risk adjustment from our valuation of the Affimer reagents business, which we now value approx. £140mil, from about £110mil before this deal was signed.

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January 24 2018

At the AGM of January 18th, Avacta reported good progress for both the Affimer therapeutic and reagents programs.

Their lead immuno-oncology development program is proceeding according to plan and multiple development milestones are expected in the course of 2018 (see next section for further details).

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November 16 2017
  • Genedrive (LON:GDR) on track to become a commercial stage, point-of-need diagnostics company
  • Launch of Genedrive® Hepatitis C (HCV) test at IFCC World Lab October 2017, with commercial sales expected in the coming quarters (African markets)
  • Distribution agreement signed for HCV test for Asia Pacific
  • Collaboration with the US Defense Department (bio-hazard program) to generate further income (c. $1.9mln) in the current fiscal year
  • Re-launch of Genedrive® MTB (tuberculosis) test is being reassessed
  • Management actively engaged in the disposal of the legacy service business (preclinical research and pharmacogenomics)
  • Cash position of £4.2mln as of 30 September 2017, enough to finance the ongoing business well into fiscal year 2019
  • Our SOTP valuation yields an equity value of c. £24mln, over 3x current market capitalization

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