Summit Therapeutics PLC (LON:SUMM) (NASDAQ: SMMT) has raised around £15mln from an accelerated book-build placing of 8,333,333 new ordinary shares, at a price of 180p each, to advance its treatment for Duchenne Muscular Dystrophy (DMD).
The AIM-listed group noted that the placing price represents a discount of 5.3% to its closing mid-market price on 26 March 2018 of 190p, and the maximum number of placing shares issued represent approximately 10.2% of the company's enlarged issued share capital. In early afternoon trading, Summit shares held steady at 190p.
READ: Summit Therapeutics presents poster on Phase Out DMD clinical trial
The company said the completed placing, which was oversubscribed, received support from both existing and new shareholders.
The group expects to use the placing’s net proceeds to accelerate preparatory activities for a placebo-controlled clinical trial for DMD treatment ezutromid, and for a potential regulatory filing of ezutromid based on the 48-week results from the ongoing Phase 2 clinical trial.
It added that the funds will also be used to continue development of the company's utrophin modulator and infectious disease pipeline activities, and support initiation of the Phase 3 clinical trials of ridinilazole for C. difficile infection that are planned to commence in the first quarter of 2019.
Glyn Edwards, Summit’s chief executive officer, commented: "We are pleased with the level of interest from both existing and new investors in supporting our plans to advance ezutromid, our utrophin modulator for DMD.”
He added: "The funds from this placing will provide us clinical and regulatory flexibility as we seek to rapidly advance ezutromid and bring this potentially transformational therapy to patients as quickly as possible."
Summit recently announced positive interim 24-week data from its PhaseOut DMD clinical trial which showed that ezutromid significantly reduced muscle damage and inflammation in patients with DMD.
Edwards said: “We look forward to the full 48-week trial data in the third quarter of 2018 which could further support the disease modifying potential of ezutromid as a treatment for all patients with DMD."
Panmure Gordon (UK) Limited and N+1 Singer Advisory LLP acted as joint brokers and joint bookrunners in relation the placing, which was not underwritten.
-- Adds completed placing details, share price --