Summit Therapeutics reported its financial results for the first quarter ended April 30, 2016. Loss was £5.2 million.
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Cash and cash equivalents were £10 million compared to £16.3 million at January 31, 2016. Loss was £5.2 million compared to a loss of £3.4 million for the three months ended April 30, 2015.
Other operating income for the three months ended April 30, 2016 was £0.06 million compared to £0.4 million for the three months ended April 30, 2015.
Income recognised as part of the Wellcome Trust Translational Award decreased by £0.2 million to £650 for the three months ended April 30, 2016 from £0.2 million for the three months ended April 30, 2015.
As of April 30, 2016, the company had an accrued income balance of £0.1 million related to cash due to be received from the Wellcome Trust, which we expect to receive within the next twelve months upon achievement of the final milestone of the Wellcome Trust Award when we deliver final reports related to the grant.
Income recognized as part of the funding from Innovate UK for the DMD programme decreased by £0.1 million to £0.06 million for the three months ended April 30, 2016 from £0.2 million for the three months ended April 30, 2015. The decrease in income is in line with the achievement of milestones to date under the funding agreement.
Research and development expenses increased by £1.7 million to £4.8 million for the three months ended April 30, 2016 from £3.1 million for the three months ended April 30, 2015.
This increase was primarily due to increased investment in our DMD programme which increased by £1.1 million to £2.3 million from £1.2 million for the three months ended April 30, 2015, and a £0.6 million increase in research and development related staffing costs driven by an increase in headcount.
General and administration expenses increased by £0.3 million to £1.4 million for the three months ended April 30, 2016 from £1.1 million for the three months ended April 30, 2015.
This increase was primarily due to additional corporate costs of £0.3 million associated with being a publicly traded company in the United States as well as in the United Kingdom and a £0.2 million increase in staff related costs offset by a £0.2 million favourable exchange rate variance.
Net cash used by operating activities increased by £2.5 million to £6.4 million for the three months ended April 30, 2016 compared to £3.9 million for the three months ended April 30, 2015. This increase was driven by an increase in research and development expenditure and an increase in working capital requirements of £0.3 million.
Net cash used in investing activities for the three months ended April 30, 2016 and the three months ended April 30, 2015 includes the net amount of bank interest received on cash deposits less amounts paid to acquire property, plant and equipment.
Net cash inflow from financing activities for the three months ended April 30, 2016 relates to proceeds of £0.1 million received following the exercise of warrants on 14 April 2016. For the three months ended April 30, 2015 the Company received net proceeds of £22.0 million from the sale of equity securities. ■