Summit Therapeutics PLC (NASDAQ: SMMT) is flying early on in the market this morning, and for good reason. The company announced that it has been awarded an additional $12 million under its contract with the Biomedical Advanced Research And Development Authority. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The $12 million award;
- what we’re seeing from SMMT as a result; and
- what we’ll be watching for with regard to the stock ahead.
SMMT Climbs On $12 Million Award
As mentioned above, Summit Therapeutics is having an incredibly strong start to the trading session this morning after news broke that the company has received a $12 million injection of funding. In a press release issued early this morning, the company announced that it has been awarded the additional funds under its contract with the Biomedical Advanced Research and Development Authority, which is a division within the US Department of Health and Human Services. In the release, SMMT said that the funds will further support the Phase 3 development program surrounding ridinilazole. Ridinilazole is the company’s precision new mechanism antibiotic for the treatment of C. difficile infection (CDI). In a statement, Mr. Glyn Edwards, CEO at SMMT, had the following to offer:
BARDA’s continued support underlines the promise ridinilazole has as a potential front-line CDI treatment option which can treat the initial infection and address the key clinical issue of recurrent disease… We look forward to the planned initiation of the Phase 3 clinical trials which remains on track for the first quarter of 2019.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Summit Therapeutics, the news proved to be overwhelmingly positive. After all, the $12 million in new funds will help to push the company through the Phase 3 development program and closer to drug approval. So, it comes as no surprise that excited investors are pushing the stock toward the top this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:46), SMMT is trading at $2.28 per share after a gain of $0.23 per share or 11.46% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SMMT. In particular, we’re interested in following the story surrounding the company’s continued work in the CDI space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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