Summit will receive $2.5m upfront with the potential to receive up to a further $25m in the short-term, plus a % of further sales.
Companies: Summit Therapeutics Inc
Summit Therapeutics (LON: SUMM) announced today it has penned an agreement with Eurofarma, granting them exclusive rights for the development and commercialisation of the Group's Ridinilazole product throughout Latin America.
In a deal worth up to $25m, The Brazilian-based company will develop and commercialise Ridinilazole throughout its territories with Summit receiving a $2.5m payment up front, with the potential for a further $25.15m at the various development and commercialisation milestones up to $100m in sales. For every further $100m in sales SUMM is entitled to a "mid to high teens percentage of net sales".
The deal pleased the market this morning as SUMM shares jumped 11% in early trading.
Ridinilazole is "a targeted antibiotic that has the potential as a frontline therapy to treat initial infection and preserve patients' microbiomes to reduce the rate of recurrent CDI (Clostridium Difficile Infection)." It is currently in Phase II clinical trials with Phase III set to commence in H1 18.
The deal comes after Summit was recently awarded a contract with the US Government agency BARDA worth $62m, furthering the development of Ridinilazole.
Chief Executive Officer of Summit Glyn Edwards commented:
"Eurofarma's established infrastructure and expertise in Latin America are ideally placed to commercialise our novel antibiotic, Ridinilazole."
After reporting Revenues and a Net Loss in FY16 of £2.3m and £21m respectively, consensus is forecasting these figures to change dramatically in FY18, moving to Revenues of £24m and a Net Loss of £0.5m.