Document and Entity Information
Document and Entity Information | 3 Months Ended |
Apr. 30, 2019 | |
Document And Entity Information [Abstract] | |
Document type | 6-K |
Document period end date | Apr. 30, 2019 |
Amendment flag | false |
Registrant name | Summit Therapeutics plc |
Central index key | 0001599298 |
Current fiscal year end date | --01-31 |
Document fiscal year focus | 2020 |
Document fiscal period focus | Q1 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Interim Statement of Financial Position - GBP (£) £ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 | [1] | Jan. 31, 2018 | [1] |
Non-current assets | |||||
Goodwill | £ 1,814 | £ 1,814 | £ 2,478 | ||
Intangible assets | 10,397 | 10,604 | 14,785 | ||
Property, plant and equipment | 1,391 | 1,540 | 2,067 | ||
Non-current assets | 13,602 | 13,958 | 19,330 | ||
Current assets | |||||
Trade and other receivables | 9,458 | 13,491 | 11,087 | ||
Current tax receivable | 2,277 | 6,328 | 4,654 | ||
Cash and cash equivalents | 28,315 | 26,858 | 20,102 | [2] | |
Current assets | 40,050 | 46,677 | 35,843 | ||
Total assets | 53,652 | 60,635 | 55,173 | ||
Non-current liabilities | |||||
Lease liabilities | (567) | (647) | (962) | ||
Deferred revenue | (706) | (831) | (27,270) | ||
Financial liabilities on funding arrangements | 0 | 0 | (3,090) | ||
Provisions for other liabilities and charges | (1,903) | (1,851) | (1,641) | ||
Deferred tax liability | (1,643) | (1,675) | (2,379) | ||
Non-current liabilities | (4,819) | (5,004) | (35,342) | ||
Current liabilities | |||||
Trade and other payables | (6,757) | (8,733) | (8,825) | ||
Lease liabilities | (358) | (358) | (324) | ||
Deferred revenue and income | (2,445) | (3,374) | (13,834) | ||
Contingent consideration | (629) | (629) | 0 | ||
Current liabilities | (10,189) | (13,094) | (22,983) | ||
Total liabilities | (15,008) | (18,098) | (58,325) | ||
Net assets / (liabilities) | 38,644 | 42,537 | (3,152) | ||
EQUITY | |||||
Share capital | 1,605 | 1,604 | 736 | ||
Share premium account | 92,806 | 92,806 | 60,237 | ||
Share-based payment reserve | 1,010 | 1,148 | 6,743 | ||
Merger reserve | 3,027 | 3,027 | 3,027 | ||
Special reserve | 19,993 | 19,993 | 19,993 | ||
Currency translation reserve | 59 | 56 | 37 | ||
Accumulated losses reserve | (79,856) | (76,097) | (93,925) | ||
Total equity / (deficit) | £ 38,644 | £ 42,537 | [3] | £ (3,152) | [3] |
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | ||||
[2] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | ||||
[3] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Interim Statement of Comprehensive Income - GBP (£) £ in Thousands | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | ||
Statement of comprehensive income [abstract] | |||
Revenue | £ 249 | £ 3,874 | [1] |
Other operating income | 4,871 | 3,455 | [1] |
Operating expenses | |||
Research and development | (8,273) | (11,590) | [1] |
General and administration | (1,655) | (2,328) | [1] |
Total operating expenses | (9,928) | (13,918) | [1] |
Operating loss | (4,808) | (6,589) | [1] |
Finance income | 2 | 1 | [1] |
Finance costs | (61) | (200) | [1] |
Loss before income tax | (4,867) | (6,788) | [1],[2] |
Income tax | 842 | 946 | [1] |
Loss for the period | (4,025) | (5,842) | [1] |
Other comprehensive income | |||
Exchange differences on translating foreign operations | 3 | 7 | [1] |
Total comprehensive loss for the period | £ (4,022) | £ (5,835) | [1] |
Basic and diluted loss per ordinary share from operations (in GBP per share) | £ (0.03) | £ (0.08) | |
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | ||
[2] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Interim Statement of Cash Flows - GBP (£) £ in Thousands | 3 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | [2] | ||
Cash flows from operating activities | ||||
Loss before income tax | £ (4,867) | £ (6,788) | [1] | |
Adjusted for: | ||||
Finance income | (2) | (1) | ||
Finance costs | 61 | 200 | ||
Foreign exchange gain | (154) | (457) | ||
Depreciation | 143 | 160 | ||
Amortization of intangible fixed assets | 207 | 208 | ||
Loss on disposal of assets | 10 | 0 | ||
Research and development expenditure credit | 0 | (65) | ||
Share-based payment | 128 | 545 | ||
Adjusted loss from operations before changes in working capital | (4,474) | (6,198) | ||
Decrease / (increase) in trade and other receivables | 4,047 | (1,426) | ||
Decrease in deferred revenue | (1,054) | (2,339) | ||
(Decrease) / increase in trade and other payables | (2,021) | 3,007 | ||
Cash used in operations | (3,502) | (6,956) | ||
Taxation received | 4,897 | 0 | ||
Net cash generated from / (used in) operating activities | 1,395 | (6,956) | ||
Investing activities | ||||
Purchase of property, plant and equipment | (4) | (25) | ||
Purchase of intangible assets | 0 | (5) | ||
Interest received | 2 | 1 | ||
Net cash used in investing activities | (2) | (29) | ||
Financing activities | ||||
Proceeds from issue of share capital | 0 | 15,000 | ||
Transaction costs on share capital issued | 0 | (858) | ||
Proceeds from exercise of share options | 1 | 99 | ||
Repayment of lease liabilities | (89) | (84) | ||
Net cash (used in) / generated from financing activities | (88) | 14,157 | ||
Increase in cash and cash equivalents | 1,305 | 7,172 | ||
Effect of exchange rates in cash and cash equivalents | 152 | 411 | ||
Cash and cash equivalents at beginning of the period | [3] | 26,858 | 20,102 | |
Cash and cash equivalents at end of the period | £ 28,315 | £ 27,685 | ||
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | |||
[2] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | |||
[3] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Interim Statement of Changes in Equity Statement - GBP (£) £ in Thousands | Total | Share capital | Share premium account | Share-based payment reserve | Merger reserve | Special reserve | Currency translation reserve | Accumulated losses reserve | IFRS 16 | IFRS 16Accumulated losses reserve | ||
Change in accounting policy (full retrospective application IFRS 16) | £ 32 | £ 32 | ||||||||||
Beginning balance (Previously reported) at Jan. 31, 2018 | £ (3,184) | £ 736 | £ 60,237 | £ 6,743 | £ 3,027 | £ 19,993 | £ 37 | £ (93,957) | ||||
Beginning balance at Jan. 31, 2018 | [2] | (3,152) | [1] | 736 | 60,237 | 6,743 | 3,027 | 19,993 | 37 | (93,925) | ||
Loss for the period | [2] | (5,842) | (5,842) | |||||||||
Currency translation adjustment | 7 | [3] | 7 | |||||||||
Total comprehensive loss for the period | [2] | (5,835) | 7 | (5,842) | ||||||||
New share capital issued | 15,000 | 83 | 14,917 | |||||||||
Transaction costs on share capital issued | (858) | (858) | ||||||||||
Share options exercised | 99 | 1 | 98 | |||||||||
Share-based payment | 545 | 545 | ||||||||||
Ending balance at Apr. 30, 2018 | [2] | 5,799 | 820 | 74,394 | 7,288 | 3,027 | 19,993 | 44 | (99,767) | |||
Change in accounting policy (full retrospective application IFRS 16) | £ (5) | £ (5) | ||||||||||
Beginning balance (Previously reported) at Jan. 31, 2019 | 42,542 | 1,604 | 92,806 | 1,148 | 3,027 | 19,993 | 56 | (76,092) | ||||
Beginning balance at Jan. 31, 2019 | [2] | 42,537 | [1] | 1,604 | 92,806 | 1,148 | 3,027 | 19,993 | 56 | (76,097) | ||
Loss for the period | (4,025) | (4,025) | ||||||||||
Currency translation adjustment | 3 | 3 | ||||||||||
Total comprehensive loss for the period | (4,022) | 3 | (4,025) | |||||||||
Share options exercised | 1 | 1 | 0 | |||||||||
Share-based payment | 128 | 128 | ||||||||||
Transfer | (266) | 266 | ||||||||||
Ending balance at Apr. 30, 2019 | £ 38,644 | £ 1,605 | £ 92,806 | £ 1,010 | £ 3,027 | £ 19,993 | £ 59 | £ (79,856) | ||||
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | |||||||||||
[2] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | |||||||||||
[3] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Basis of Accounting
Basis of Accounting | 3 Months Ended |
Apr. 30, 2019 | |
Basis Of Presentation [Abstract] | |
Basis of Accounting | Basis of Accounting The unaudited condensed consolidated interim financial statements of Summit Therapeutics plc ('Summit') and its subsidiaries (together, the 'Group') for the three months ended April 30, 2019 have been prepared in accordance with IAS 34 'Interim Financial Reporting' , other International Financial Reporting Standards ('IFRS') and International Financial Reporting Interpretations Committee (‘IFRIC’) interpretations as issued by the International Accounting Standards Board and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS including those applicable to accounting periods ending January 31, 2020 and the accounting policies set out in Summit’s consolidated financial statements. There have been no changes to the accounting policies as contained in the annual consolidated financial statements as of and for the year ended January 31, 2019 other than as described below. These condensed consolidated interim financial statements do not include all information required for full statutory accounts within the meaning of section 434 of Companies Act 2006 and should be read in conjunction with the consolidated financial statements of the Group as at January 31, 2019 (the ‘2019 Accounts’). The 2019 Accounts, on which the Company’s auditors delivered an unqualified audit report, are available on the Group's website at www.summitplc.com and will be delivered to the Registrar of Companies following the 2019 Annual General Meeting. The auditor’s report did not contain any statement under section 498 of the Companies Act 2006 but did contain a statement from the auditors drawing the shareholders’ attention to the Group’s need to raise additional capital as noted below. These unaudited condensed consolidated interim financial statements were authorized for issue by the Board of Directors on June 12, 2019. The interim financial statements have been prepared assuming the Group will continue on a going concern basis. Based on management's forecasts, the Group's existing cash and cash equivalents, anticipated payments from BARDA under its contract for the development of ridinilazole and anticipated payments from CARB-X under its contract for the development of its gonorrhea antibiotic candidate are expected to be sufficient to enable the Group to fund its operating expenses and capital expenditure requirements through January 31, 2020. The Group will need to raise additional funding in order to support, beyond this date, its planned research and development efforts, potential commercialization related activities, if any of its product candidates receive marketing approval, as well as to support activities associated with operating as a public company in the United States and the United Kingdom. Should the Group be unable to raise additional funding, management has the ability to take mitigating action to fund its operating expenses and capital expenditure requirements in relation to its clinical development activities for only a short period beyond 12 months from the date of issuance of these financial statements. These circumstances represent a material uncertainty which may cast and raise significant doubt on the Group’s ability to continue as a going concern. The interim financial statements do not contain any adjustments that might result if the Group was unable to continue as a going concern. The Group is evaluating various options to finance its cash needs through a combination of some, or all, of the following: equity offerings, collaborations, strategic alliances, grants and clinical trial support from government entities, philanthropic, non-government and not-for-profit organizations and patient advocacy groups, debt financings, and marketing, distribution or licensing arrangements. Whilst the Group believes that funds would be available in this manner before the end of January 2020, there can be no assurance that the Group will be able to generate funds, on terms acceptable to the Group, on a timely basis or at all, which would impact the Group’s ability to continue as a going concern. The failure of the Group to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Group’s business, results of operations and financial condition. The Group’s activities and results are not exposed to any seasonality. Adoption of IFRS 16 ' Leases' IFRS 16 specifies how to recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. The standard is effective for reporting periods beginning on or after January 1, 2019 and replaces the accounting standard IAS 17 ' Leases' . Two adoption methods are permitted for transition: retrospectively to all prior reporting periods presented in accordance with IAS 8 ' Accounting Policies, Changes in Accounting Estimates and Errors' , with certain practical expedients permitted; or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. 1 . Basis of Accounting (continued) Accounting policy At inception of a contract, the Group assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognizes a right-of-use asset within property, plant and equipment and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method. The lease term includes periods covered by an option to extend if the Group is reasonably certain to exercise that option and periods covered by an option to terminate if it is reasonably certain not to exercise that option. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. The lease liability is subsequently measured at amortized cost using the effective interest method and is remeasured when there is a change in future contractual lease payments or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. The Group adopted this new standard effective February 1, 2019, as required, using the full retrospective transition method in accordance with IAS 8 ' Accounting Policies, Changes in Accounting Estimates and Errors' . Under this method, the Group will adjust its results for the years ended January 31, 2018, and 2019, and applicable interim periods, as if IFRS 16 had been effective for those periods. The Group has assessed the effect of adoption of this standard as it relates to its UK leased properties in Oxford and Cambridge and has concluded that any other contracts are not within the scope of IFRS 16 or are of low value, for which the Group has elected not to apply the requirement of IFRS 16. Due to the adoption of IFRS 16, the Group has recognized both right-of-use assets and lease liabilities related to its UK leased properties. The Group no longer recognizes a lease incentive accrual and has reclassified some costs from research and development expenses and general and administration expenses to finance costs, being the interest expense on lease liabilities. In addition, some amounts previously presented as cash outflows from operating activities in the Group's Consolidated Statement of Cash Flows are now presented as cash flows from investing or financing activities. This change in accounting policy has been reflected retrospectively in the comparative Statement of Financial Position for the year ended January 31, 2019, the comparative Statement of Comprehensive Income, Statement of Cash Flows and Statement of Changes in Equity for the three months ended April 30, 2018 , including the opening accumulated losses reserve at February 1, 2018 and February 1, 2019. During the year ended January 31, 2019, the Group re-assessed the allocation of staff related expenses, amounts totaling £0.3 million , previously reported as general and administration expenses during the three months ended April 30, 2018. These are now presented as research and development expenses. The impact of the change in accounting policy to IFRS 16 and the allocation of the staff related expenses discussed above on the comparatives to the unaudited condensed consolidated interim financial statements is disclosed in the following tables. Impact on the Unaudited Condensed Consolidated Interim Original Adjusted Statement of Financial Position £000s £000s £000s Non-current assets Property, plant and equipment 616 1,540 924 Current assets Trade and other receivables 13,547 13,491 (56 ) Non-current liabilities Lease liabilities — (647 ) (647 ) Current liabilities Trade and other payables (8,865 ) (8,733 ) 132 Lease liabilities — (358 ) (358 ) Equity Accumulated losses reserve (76,092 ) (76,097 ) (5 ) 1 . Basis of Accounting (continued) Impact on the Unaudited Condensed Consolidated Interim Original Adjusted Statement of Financial Position £000s £000s £000s Non-current assets Property, plant and equipment 809 2,067 1,258 Current assets Trade and other receivables 11,134 11,087 (47 ) Non-current liabilities Lease liabilities — (962 ) (962 ) Current liabilities Trade and other payables (8,932 ) (8,825 ) 107 Lease liabilities — (324 ) (324 ) Equity Accumulated losses reserve (93,957 ) (93,925 ) 32 Impact on the Unaudited Condensed Consolidated Interim Original Three months ended April 30, 2018 Adjusted Three months ended April 30, 2018 Impact Statement of Comprehensive Income £000s £000s £000s Operating expenses Research and development (11,254 ) (11,590 ) (336 ) General and administration (2,669 ) (2,328 ) 341 Operating loss (6,594 ) (6,589 ) 5 Finance costs (188 ) (200 ) (12 ) Loss for the period (5,835 ) (5,842 ) (7 ) Impact on the Unaudited Condensed Consolidated Interim Original Three months ended April 30, 2018 Adjusted Three months ended April 30, 2018 Impact Statement of Cash Flows £000s £000s £000s Loss before income tax (6,781 ) (6,788 ) (7 ) Adjusted for: Finance costs 188 200 12 Depreciation 77 160 83 Increase in trade and other receivables (1,434 ) (1,426 ) 8 Increase in trade and other payables 3,019 3,007 (12 ) Financing activities Repayment of lease liabilities — (84 ) (84 ) Impact on net cash flows — The Group will continue to monitor interpretations released by the IFRS Interpretations Committee and amendments to IFRS 16 and, as appropriate, will adopt these from the effective dates. For additional details regarding the Group's lease agreements see Note 9 ' Leases '. |
Critical accounting estimates a
Critical accounting estimates and judgments | 3 Months Ended |
Apr. 30, 2019 | |
Disclosure of changes in accounting estimates [abstract] | |
Critical accounting estimates and judgments | Critical accounting estimates and judgments In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended January 31, 2019. |
Loss per share calculation
Loss per share calculation | 3 Months Ended |
Apr. 30, 2019 | |
Earnings per share [abstract] | |
Loss per share calculation | Loss per share calculation The loss per share has been calculated using the loss for the period and dividing this by the weighted average number of ordinary shares in issue during the three months ended April 30, 2019 : 160,398,130 (for three months ended April 30, 2018 : 76,571,101 ). Since the Group has reported a net loss, diluted loss per ordinary share is equal to basic loss per share. |
Revenue
Revenue | 3 Months Ended |
Apr. 30, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Revenue | Revenue Three months ended April 30, 2019 Three months ended April 30, 2018 Analysis of revenue by category £000s £000s Licensing agreements 249 3,628 Research collaboration agreement — 246 249 3,874 Eurofarma Laboratórios S.A. On December 21, 2017, Summit announced it had entered into an exclusive license and commercialization agreement with Eurofarma Laboratórios S.A. ('Eurofarma'), pursuant to which the Group granted Eurofarma the exclusive right to commercialize ridinilazole in specified countries in South America, Central America and the Caribbean. The Group has retained commercialization rights in the rest of the world. Under the terms of the license and commercialization agreement with Eurofarma, the Group received an upfront payment of $2.5 million ( £1.9 million ) from Eurofarma. The terms of the contract have been assessed under IFRS 15 ' Revenue from contracts with customers' and currently only the upfront payment is included in the transaction price. The upfront payment was initially reported as deferred revenue in the Consolidated Statement of Financial Position and is recognized as revenue over the development period. The Group recognized £0.12 million of revenue related to the upfront payment during the three months ended April 30, 2019. In addition, the Group will be entitled to receive an additional $3.75 million in development milestones upon the achievement of staged patient enrollment targets in the licensed territory in one of the two planned Phase 3 clinical trials of ridinilazole. The Group is eligible to receive up to $21.5 million in development, commercial and sales milestones when cumulative net sales equal or exceed $100.0 million in the Eurofarma licensed territory. Each subsequent achievement of an additional $100.0 million in cumulative net sales will result in the Group receiving additional milestone payments, which, when combined with anticipated product supply transfer payments from Eurofarma paid to the Group in connection with a commercial supply agreement to be entered into between the two parties, will provide payments estimated to range from a mid- to high-teens percentage of cumulative net sales in the Eurofarma licensed territory. The Group estimates such product supply transfer payments from Eurofarma will range from a high single-digit to low double-digit percentage of cumulative net sales in the licensed territory. Sarepta Therapeutics, Inc. On October 4, 2016, Summit announced its entry into an exclusive license and collaboration agreement with Sarepta Therapeutics, Inc. (‘Sarepta’). In June 2018, the Group announced the discontinuation of the development of ezutromid after PhaseOut DMD did not meet its primary or secondary endpoints. As part of the license and collaboration agreement with Sarepta, the Group agreed to collaborate with Sarepta on the research and development of the licensed products pursuant to a joint development plan through a joint steering committee comprised of an equal number of representatives from each party. From January 1, 2018, the Group was responsible for 55% of the budgeted research and development costs related to the licensed products, and Sarepta was responsible for 45% of such costs. Any costs in excess of 110% of the budgeted amount are borne by the party that incurred such costs. This development cost share income is recognized as part of licensing agreements revenue as the Group acted as a principal in the scope of the research and development activities of the agreement. The Group recognized £0.13 million of cost share income for both wind-down activities in relation to the ezutromid clinical trial and next and future generation utrophin modulation development activities during the three months ended April 30, 2019. |
Other operating income
Other operating income | 3 Months Ended |
Apr. 30, 2019 | |
Analysis of income and expense [abstract] | |
Other operating income | Other operating income Three months ended April 30, 2019 Three months ended April 30, 2018 Analysis of other operating income by category £000s £000s Income recognized in respect of BARDA 4,619 3,283 Grant income 247 103 Research and development credit 5 65 Other income — 4 4,871 3,455 BARDA In September 2017, the Group was awarded a funding contract with the Biomedical Advanced Research and Development Authority ('BARDA'), an agency of the US government's Department of Health and Human Services' Office of the Assistant Secretary for Preparedness and Response, worth up to $62 million . The BARDA contract provides for a cost-sharing arrangement under which BARDA would fund a specified portion of estimated costs for specified activities related to the continued clinical and regulatory development of ridinilazole for the treatment of C. difficile infection ('CDI'). Under the terms of the contract, the Group was initially eligible to receive $32 million from BARDA to fund, in part, obtaining regulatory approval for and commencing enrollment and dosing into the Group's two planned Phase 3 clinical trials of ridinilazole. In August 2018, the Group was awarded an additional $12 million upon exercise by BARDA of the first option work segment under the contract, which brought the total committed BARDA funding to $44 million . In addition, the Group is eligible for additional funding under the contract pursuant to two further independent option work segments, which may be exercised by BARDA in its sole discretion upon the achievement of certain development and other milestones for ridinilazole. If BARDA exercises its remaining option work segments in full the total funding under the contract would increase up to $62 million . During the three months ended April 30, 2019 , the Group recognized funding income from BARDA of £4.6 million for the CDI program ( three months ended April 30, 2018 : £3.3 million ). CARB-X Grant income includes income from the Group's funding arrangement for the Group's antibiotic pipeline research and development activities. In July 2018, the Group was granted a sub-award of up to $4.5 million from the Trustees of Boston University under the Combating Antibiotic Resistant Bacteria Biopharmaceutical Accelerator program, or CARB-X. Under the CARB-X award, the Group received an initial $2.0 million in funding from CARB-X in July 2018 that, in part, helped fund the selection of a preclinical candidate from the Group's lead gonorrhea series of clinical candidates. The remaining $2.5 million is split into two option segments, which may be exercised by CARB-X upon the achievement of certain development milestones. If exercised in full, this funding could support the development of the selected gonorrhea candidate through the end of a Phase 1 clinical trial. During the three months ended April 30, 2019 , the Group recognized grant income from CARB-X of £0.2 million ( three months ended April 30, 2018 : £ nil ). |
Financial instruments
Financial instruments | 3 Months Ended |
Apr. 30, 2019 | |
Financial Instruments [Abstract] | |
Financial instruments | Financial instruments The Group’s activities expose it to a variety of financial risks: foreign currency risk; interest rate risk; credit risk; and liquidity risk. The condensed consolidated interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements. They should be read in conjunction with the Group’s annual financial statements as of January 31, 2019 . There have been no changes in any risk management policies since the year end. |
Segmental reporting
Segmental reporting | 3 Months Ended |
Apr. 30, 2019 | |
Operating Segments [Abstract] | |
Segmental reporting | Segmental reporting The Group’s activities are covered by one operating and reporting segment: Drug Development, as detailed more fully in the annual consolidated financial statements as of and for the year ended January 31, 2019 . There have been no changes to management’s assessment of the operating and reporting segments of the Group during the period. |
Income tax
Income tax | 3 Months Ended |
Apr. 30, 2019 | |
Income Taxes [Abstract] | |
Income tax | Income tax Three months ended April 30, 2019 Three months ended April 30, 2018 £000s £000s Current period research and development tax credit on qualifying expenditure 705 1,036 Tax credit / (expense) related to the US operations 106 (90 ) Total current tax 811 946 Release of temporary difference relating to intangible asset 31 — Total deferred tax 31 — Total tax credit for the period 842 946 The research and development tax credit is recognized based on management’s estimate of the qualifying expenditure relating to research and development activities carried out by the Group. The UK operations have estimated losses for the year and as such there is no accrued income tax for the period. |
Leases
Leases | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Group has two operating leases relating to its UK leased properties in Oxford and Cambridge that are within the scope of IFRS 16. A summary of these leases is as follows: • In February 2017, the Group entered into a 10 -year lease agreement for its office premises in Oxford, UK. The lease contains a break clause with the option to terminate the lease on the fifth anniversary of the agreement. • In December 2017, the Group entered into a 4 -year lease agreement for its office and lab premises in Cambridge, UK. The lease contains a break clause with the option to terminate the lease on the second anniversary of the agreement. The adoption of IFRS 16 resulted in the recognition of lease liabilities and right-of-use assets. The carrying value of the right-of-use assets included within property, plant and equipment as at April 30, 2019 is £1.0 million ( January 31, 2019 : £1.0 million ; January 31, 2018 : £1.4 million ). The following table summarizes the future minimum lease payments under the Group's operating lease liabilities: April 30, 2019 January 31, 2019 January 31, 2018 Maturity of lease liabilities £000s £000s £000s Fiscal year ended January 31, 2019 N/A N/A 323 2020 (remaining 9 months as at April 30, 2019) 269 358 358 2021 358 358 358 2022 294 294 294 2023 55 55 55 Total minimum lease payments 976 1,065 1,388 Less: imputed interest (51 ) (60 ) (102 ) Total lease liabilities 925 1,005 1,286 Liabilities Current lease liabilities 358 358 324 Non-current lease liabilities 567 647 962 925 1,005 1,286 9 . Leases (continued) The following table contains a summary of the lease costs recognized under IFRS 16 and other information pertaining to the Group’s operating leases for the three months ended April 30, 2019 : Three months ended April 30, 2019 Three months ended April 30, 2018 Operating leases £000s £000s Lease cost Depreciation 87 87 Interest expense 9 12 Total lease cost 96 99 Other information Operating lease payments 89 84 Weighted average remaining lease term 2.7 years 3.0 years Weighted average discount rate 3.7 % 3.7 % For details of the Group's transition to IFRS 16 see Note 1 ' Basis of Accounting - Adoption of IFRS 16 ‘ Leases. ’’ |
Provisions and contingencies
Provisions and contingencies | 3 Months Ended |
Apr. 30, 2019 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
Provisions and contingencies | Provisions and contingencies Provisions Assumed contingent liabilities Dilapidations Royalties Total £000s £000s £000s £000s At February 1, 2019 1,657 150 44 1,851 Unwinding of the discount factor 52 — — 52 At April 30, 2019 1,709 150 44 1,903 Assumed contingent liabilities Dilapidations Royalties Total £000s £000s £000s £000s At February 1, 2018 1,466 150 25 1,641 Additions — — 19 19 Unwinding of the discount factor 191 — — 191 At January 31, 2019 1,657 150 44 1,851 Assumed contingent liability On December 23, 2017, the Group acquired Discuva. As part of the acquisition, the Group assumed certain contingent liabilities as certain employees, former employees and former directors of Discuva are eligible for payments from Discuva based on specified development and clinical milestones related to proprietary product candidates developed under the Discuva platform. The timing of these potential payments is uncertain. On the date of acquisition, the fair value of the assumed contingent liability was estimated using the expected value of the payments. The assumed contingent liabilities are subsequently measured at amortized cost using discounted cash flow models which calculate the risk adjusted net present values of estimated potential future cash flows of the payments. The assumed contingent liabilities are re-measured when there is a specific significant event that provides evidence of a significant change in the probability of successful development and clinical milestones being achieved. The models will be updated for changes in the probability of successful development and clinical milestones being achieved and other associated assumptions with the discount factor to remain unchanged within the model. A discount factor of 13% has been used to discount the contingent liabilities back to net present value. This discount factor has been calculated using appropriate measures and rates which could have been obtained in the period that the contingent liabilities were assumed. The value of the assumed contingent liability as at April 30, 2019 is £1.7 million ( January 31, 2019 : £1.7 million ). The contingent liability has not been re-measured during the period. 10 . Provisions and contingencies (continued) Contingencies In addition to those items provided for above, the Group also has the following contingencies: University College London (novated from The School of Pharmacy, University of London) The Group has agreed to pay The School of Pharmacy, University of London, a low single-digit share of all revenue, pre and post commercialization, received by the Group in respect of ridinilazole up to a maximum of £1.0 million in consideration of their role in the development of the initial compound series from which ridinilazole was later identified. Following the license and commercialization agreement entered into with Eurofarma Laboratórios S.A., an initial payment was made to The School of Pharmacy of £0.04 million . Wellcome Trust The provision in respect of royalties relates to the amounts due to the Wellcome Trust. Under the terms of the funding arrangement entered into in October 2017, the Wellcome Trust is entitled to a share of the cumulative net revenue that the Group or its affiliates receive from exploiting the exploitation IP or award products. If Summit undertakes the commercialization of ridinilazole, the Wellcome Trust would be eligible to receive a low-single digit percentage share of net revenues. If a third-party undertakes the commercialization of ridinilazole, the Wellcome Trust would be eligible to receive a mid-single digit percentage share of net revenues received by Summit from sales by the third-party and a milestone payment of a low-single digit percentage of any cumulative pre-commercial payments received by Summit from third-party licensees. In both instances outlined above the Group would also be obligated to pay the Wellcome Trust a milestone of a specified amount if cumulative net revenue exceeds a specified amount. Following the license and commercialization agreement entered into with Eurofarma, an initial payment became due to the Wellcome Trust upon commercialization of ridinilazole. The payment has been provided for by the Group as at the period end date and has been discounted back to net present value relative to the expected timing of commercialization of ridinilazole. |
Share option scheme and Restric
Share option scheme and Restricted Stock Units | 3 Months Ended |
Apr. 30, 2019 | |
Employee Benefits [Abstract] | |
Share option scheme and Restricted Stock Units | Share option scheme and Restricted Stock Units The movement in the number of share options is set out below: Weighted average exercise price £ Three months ended April 30, 2019 Weighted average exercise price £ Three months ended April 30, 2018 Outstanding at February 1 0.35 9,168,396 1.43 8,577,236 Granted during the period 0.28 11,396,000 2.05 3,461,428 Exercised during the period — — 1.08 (92,047 ) Lapsed / surrendered during the period 1.52 (205,410 ) 1.43 (250,000 ) Number of outstanding options 0.30 20,358,986 1.61 11,696,617 The movement in the number of Restricted Stock Units (‘RSUs’) granted in the form of a nominal-cost option is set out below: Weighted average exercise price £ Three months ended April 30, 2019 Weighted average exercise price £ Three months ended April 30, 2018 Outstanding at February 1 0.01 814,256 0.01 275,877 Granted during the period — — 0.01 121,950 Exercised during the period 0.01 (104,877 ) — — Number of outstanding options 0.01 709,379 0.01 397,827 The share-based payment expense for the three months ended April 30, 2019 was £ 0.1 million ( three months ended April 30, 2018 : £ 0.5 million ) which has been allocated to the Research and development and General and administration expenses lines of the Unaudited Condensed Consolidated Interim Statement of Comprehensive Income as follows: Three months ended April 30, 2019 Three months ended April 30, 2018 £000s £000s Research and development 61 135 General and administration 67 410 128 545 |
Share capital
Share capital | 3 Months Ended |
Apr. 30, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Share capital | Share capital On April 23, 2019 , 104,877 ordinary shares were issued following the exercise of RSUs. This exercise of RSUs raised net proceeds of £1,049 . The new ordinary shares issued in connection with the RSUs exercised rank pari passu with existing ordinary shares. As of April 30, 2019 , the number of ordinary shares in issue was 160,494,758 . |
Related-party transactions
Related-party transactions | 3 Months Ended |
Apr. 30, 2019 | |
Related Party [Abstract] | |
Related-party transactions | Related-party transactions The aggregate emoluments of the Directors of the Company are shown below. Three months ended April 30, 2019 Three months ended April 30, 2018 £000s £000s Aggregate emoluments 159 152 Pension contributions 4 5 163 157 The aggregate emoluments of the Directors of the Company and key management are shown below. Three months ended April 30, 2019 Three months ended April 30, 2018 £000s £000s Aggregate emoluments 305 311 Pension contributions 11 13 316 324 There were no other related party transactions during the three months ended April 30, 2019 ( three months ended April 30, 2018 : £ nil ). |
Basis of Accounting (Policies)
Basis of Accounting (Policies) | 3 Months Ended |
Apr. 30, 2019 | |
Basis Of Presentation [Abstract] | |
Basis of preparation | The unaudited condensed consolidated interim financial statements of Summit Therapeutics plc ('Summit') and its subsidiaries (together, the 'Group') for the three months ended April 30, 2019 have been prepared in accordance with IAS 34 'Interim Financial Reporting' , other International Financial Reporting Standards ('IFRS') and International Financial Reporting Interpretations Committee (‘IFRIC’) interpretations as issued by the International Accounting Standards Board and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS including those applicable to accounting periods ending January 31, 2020 and the accounting policies set out in Summit’s consolidated financial statements. There have been no changes to the accounting policies as contained in the annual consolidated financial statements as of and for the year ended January 31, 2019 other than as described below. These condensed consolidated interim financial statements do not include all information required for full statutory accounts within the meaning of section 434 of Companies Act 2006 and should be read in conjunction with the consolidated financial statements of the Group as at January 31, 2019 (the ‘2019 Accounts’). The 2019 Accounts, on which the Company’s auditors delivered an unqualified audit report, are available on the Group's website at www.summitplc.com and will be delivered to the Registrar of Companies following the 2019 Annual General Meeting. The auditor’s report did not contain any statement under section 498 of the Companies Act 2006 but did contain a statement from the auditors drawing the shareholders’ attention to the Group’s need to raise additional capital as noted below. These unaudited condensed consolidated interim financial statements were authorized for issue by the Board of Directors on June 12, 2019. |
Going concern | The interim financial statements have been prepared assuming the Group will continue on a going concern basis. Based on management's forecasts, the Group's existing cash and cash equivalents, anticipated payments from BARDA under its contract for the development of ridinilazole and anticipated payments from CARB-X under its contract for the development of its gonorrhea antibiotic candidate are expected to be sufficient to enable the Group to fund its operating expenses and capital expenditure requirements through January 31, 2020. The Group will need to raise additional funding in order to support, beyond this date, its planned research and development efforts, potential commercialization related activities, if any of its product candidates receive marketing approval, as well as to support activities associated with operating as a public company in the United States and the United Kingdom. Should the Group be unable to raise additional funding, management has the ability to take mitigating action to fund its operating expenses and capital expenditure requirements in relation to its clinical development activities for only a short period beyond 12 months from the date of issuance of these financial statements. These circumstances represent a material uncertainty which may cast and raise significant doubt on the Group’s ability to continue as a going concern. The interim financial statements do not contain any adjustments that might result if the Group was unable to continue as a going concern. The Group is evaluating various options to finance its cash needs through a combination of some, or all, of the following: equity offerings, collaborations, strategic alliances, grants and clinical trial support from government entities, philanthropic, non-government and not-for-profit organizations and patient advocacy groups, debt financings, and marketing, distribution or licensing arrangements. Whilst the Group believes that funds would be available in this manner before the end of January 2020, there can be no assurance that the Group will be able to generate funds, on terms acceptable to the Group, on a timely basis or at all, which would impact the Group’s ability to continue as a going concern. The failure of the Group to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Group’s business, results of operations and financial condition. |
Leases | At inception of a contract, the Group assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognizes a right-of-use asset within property, plant and equipment and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method. The lease term includes periods covered by an option to extend if the Group is reasonably certain to exercise that option and periods covered by an option to terminate if it is reasonably certain not to exercise that option. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. The lease liability is subsequently measured at amortized cost using the effective interest method and is remeasured when there is a change in future contractual lease payments or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. |
Basis of Accounting (Tables)
Basis of Accounting (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Basis Of Presentation [Abstract] | |
Disclosure of changes in accounting policy | The impact of the change in accounting policy to IFRS 16 and the allocation of the staff related expenses discussed above on the comparatives to the unaudited condensed consolidated interim financial statements is disclosed in the following tables. Impact on the Unaudited Condensed Consolidated Interim Original Adjusted Statement of Financial Position £000s £000s £000s Non-current assets Property, plant and equipment 616 1,540 924 Current assets Trade and other receivables 13,547 13,491 (56 ) Non-current liabilities Lease liabilities — (647 ) (647 ) Current liabilities Trade and other payables (8,865 ) (8,733 ) 132 Lease liabilities — (358 ) (358 ) Equity Accumulated losses reserve (76,092 ) (76,097 ) (5 ) 1 . Basis of Accounting (continued) Impact on the Unaudited Condensed Consolidated Interim Original Adjusted Statement of Financial Position £000s £000s £000s Non-current assets Property, plant and equipment 809 2,067 1,258 Current assets Trade and other receivables 11,134 11,087 (47 ) Non-current liabilities Lease liabilities — (962 ) (962 ) Current liabilities Trade and other payables (8,932 ) (8,825 ) 107 Lease liabilities — (324 ) (324 ) Equity Accumulated losses reserve (93,957 ) (93,925 ) 32 Impact on the Unaudited Condensed Consolidated Interim Original Three months ended April 30, 2018 Adjusted Three months ended April 30, 2018 Impact Statement of Comprehensive Income £000s £000s £000s Operating expenses Research and development (11,254 ) (11,590 ) (336 ) General and administration (2,669 ) (2,328 ) 341 Operating loss (6,594 ) (6,589 ) 5 Finance costs (188 ) (200 ) (12 ) Loss for the period (5,835 ) (5,842 ) (7 ) Impact on the Unaudited Condensed Consolidated Interim Original Three months ended April 30, 2018 Adjusted Three months ended April 30, 2018 Impact Statement of Cash Flows £000s £000s £000s Loss before income tax (6,781 ) (6,788 ) (7 ) Adjusted for: Finance costs 188 200 12 Depreciation 77 160 83 Increase in trade and other receivables (1,434 ) (1,426 ) 8 Increase in trade and other payables 3,019 3,007 (12 ) Financing activities Repayment of lease liabilities — (84 ) (84 ) Impact on net cash flows — |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Disclosure of detailed information about revenue | Three months ended April 30, 2019 Three months ended April 30, 2018 Analysis of revenue by category £000s £000s Licensing agreements 249 3,628 Research collaboration agreement — 246 249 3,874 |
Other operating income (Tables)
Other operating income (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Analysis of income and expense [abstract] | |
Other operating income | Three months ended April 30, 2019 Three months ended April 30, 2018 Analysis of other operating income by category £000s £000s Income recognized in respect of BARDA 4,619 3,283 Grant income 247 103 Research and development credit 5 65 Other income — 4 4,871 3,455 |
Income tax (Tables)
Income tax (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Income Taxes [Abstract] | |
Disclosure of income tax credits | Three months ended April 30, 2019 Three months ended April 30, 2018 £000s £000s Current period research and development tax credit on qualifying expenditure 705 1,036 Tax credit / (expense) related to the US operations 106 (90 ) Total current tax 811 946 Release of temporary difference relating to intangible asset 31 — Total deferred tax 31 — Total tax credit for the period 842 946 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Schedule of operating lease maturity | The following table summarizes the future minimum lease payments under the Group's operating lease liabilities: April 30, 2019 January 31, 2019 January 31, 2018 Maturity of lease liabilities £000s £000s £000s Fiscal year ended January 31, 2019 N/A N/A 323 2020 (remaining 9 months as at April 30, 2019) 269 358 358 2021 358 358 358 2022 294 294 294 2023 55 55 55 Total minimum lease payments 976 1,065 1,388 Less: imputed interest (51 ) (60 ) (102 ) Total lease liabilities 925 1,005 1,286 Liabilities Current lease liabilities 358 358 324 Non-current lease liabilities 567 647 962 925 1,005 1,286 |
Schedule of lease expense and other information | The following table contains a summary of the lease costs recognized under IFRS 16 and other information pertaining to the Group’s operating leases for the three months ended April 30, 2019 : Three months ended April 30, 2019 Three months ended April 30, 2018 Operating leases £000s £000s Lease cost Depreciation 87 87 Interest expense 9 12 Total lease cost 96 99 Other information Operating lease payments 89 84 Weighted average remaining lease term 2.7 years 3.0 years Weighted average discount rate 3.7 % 3.7 % |
Provisions and contingencies (T
Provisions and contingencies (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
Disclosure of contingent liabilities | Provisions Assumed contingent liabilities Dilapidations Royalties Total £000s £000s £000s £000s At February 1, 2019 1,657 150 44 1,851 Unwinding of the discount factor 52 — — 52 At April 30, 2019 1,709 150 44 1,903 Assumed contingent liabilities Dilapidations Royalties Total £000s £000s £000s £000s At February 1, 2018 1,466 150 25 1,641 Additions — — 19 19 Unwinding of the discount factor 191 — — 191 At January 31, 2019 1,657 150 44 1,851 |
Share option scheme and Restr_2
Share option scheme and Restricted Stock Units (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Employee Benefits [Abstract] | |
Movement in share options and Restricted Stock Units | The movement in the number of share options is set out below: Weighted average exercise price £ Three months ended April 30, 2019 Weighted average exercise price £ Three months ended April 30, 2018 Outstanding at February 1 0.35 9,168,396 1.43 8,577,236 Granted during the period 0.28 11,396,000 2.05 3,461,428 Exercised during the period — — 1.08 (92,047 ) Lapsed / surrendered during the period 1.52 (205,410 ) 1.43 (250,000 ) Number of outstanding options 0.30 20,358,986 1.61 11,696,617 The movement in the number of Restricted Stock Units (‘RSUs’) granted in the form of a nominal-cost option is set out below: Weighted average exercise price £ Three months ended April 30, 2019 Weighted average exercise price £ Three months ended April 30, 2018 Outstanding at February 1 0.01 814,256 0.01 275,877 Granted during the period — — 0.01 121,950 Exercised during the period 0.01 (104,877 ) — — Number of outstanding options 0.01 709,379 0.01 397,827 |
Disclosure of share-based payment expense | The share-based payment expense for the three months ended April 30, 2019 was £ 0.1 million ( three months ended April 30, 2018 : £ 0.5 million ) which has been allocated to the Research and development and General and administration expenses lines of the Unaudited Condensed Consolidated Interim Statement of Comprehensive Income as follows: Three months ended April 30, 2019 Three months ended April 30, 2018 £000s £000s Research and development 61 135 General and administration 67 410 128 545 |
Related-party transactions (Tab
Related-party transactions (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | The aggregate emoluments of the Directors of the Company are shown below. Three months ended April 30, 2019 Three months ended April 30, 2018 £000s £000s Aggregate emoluments 159 152 Pension contributions 4 5 163 157 The aggregate emoluments of the Directors of the Company and key management are shown below. Three months ended April 30, 2019 Three months ended April 30, 2018 £000s £000s Aggregate emoluments 305 311 Pension contributions 11 13 316 324 |
Basis of Accounting - Narrative
Basis of Accounting - Narrative (Details) £ in Millions | 3 Months Ended |
Apr. 30, 2018GBP (£) | |
General and administrative expenses | Previously stated | |
Disclosure of changes in accounting estimates [line items] | |
Employee benefits expense | £ 0.3 |
Research and development expenses | |
Disclosure of changes in accounting estimates [line items] | |
Employee benefits expense | £ 0.3 |
Basis of Accounting - Disclosur
Basis of Accounting - Disclosure of changes in accounting policy (Details) - GBP (£) £ in Thousands | 3 Months Ended | ||||||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | ||||
Non-current assets | |||||||
Property, plant and equipment | £ 1,391 | £ 1,540 | [1] | £ 2,067 | [1] | ||
Current assets | |||||||
Trade and other receivables | 9,458 | 13,491 | [1] | 11,087 | [1] | ||
Non-current liabilities | |||||||
Lease liabilities | (567) | (647) | [1] | (962) | [1] | ||
Current liabilities | |||||||
Trade and other payables | (6,757) | (8,733) | [1] | (8,825) | [1] | ||
Lease liabilities | (358) | (358) | [1] | (324) | [1] | ||
Equity | |||||||
Accumulated losses reserve | (79,856) | (76,097) | [1] | (93,925) | [1] | ||
Operating expenses | |||||||
Research and development | (8,273) | £ (11,590) | [2] | ||||
General and administration | (1,655) | (2,328) | [2] | ||||
Operating loss | (4,808) | (6,589) | [2] | ||||
Finance costs | (61) | (200) | [2] | ||||
Loss for the period | (4,025) | (5,842) | [2] | ||||
Statement of Cash Flows | |||||||
Loss before income tax | (4,867) | (6,788) | [2],[3] | ||||
Adjusted for: | |||||||
Finance costs | 61 | 200 | [3] | ||||
Depreciation | 143 | 160 | [3] | ||||
Increase in trade and other receivables | 4,047 | (1,426) | [3] | ||||
Increase in trade and other payables | (2,021) | 3,007 | [3] | ||||
Financing activities | |||||||
Repayment of lease liabilities | £ (89) | (84) | [3] | ||||
Previously stated | |||||||
Non-current assets | |||||||
Property, plant and equipment | 616 | 809 | |||||
Current assets | |||||||
Trade and other receivables | 13,547 | 11,134 | |||||
Non-current liabilities | |||||||
Lease liabilities | 0 | 0 | |||||
Current liabilities | |||||||
Trade and other payables | (8,865) | (8,932) | |||||
Lease liabilities | 0 | 0 | |||||
Equity | |||||||
Accumulated losses reserve | (76,092) | (93,957) | |||||
Operating expenses | |||||||
Research and development | (11,254) | ||||||
General and administration | (2,669) | ||||||
Operating loss | (6,594) | ||||||
Finance costs | (188) | ||||||
Loss for the period | (5,835) | ||||||
Statement of Cash Flows | |||||||
Loss before income tax | (6,781) | ||||||
Adjusted for: | |||||||
Finance costs | 188 | ||||||
Depreciation | 77 | ||||||
Increase in trade and other receivables | (1,434) | ||||||
Increase in trade and other payables | 3,019 | ||||||
Financing activities | |||||||
Repayment of lease liabilities | 0 | ||||||
Adjusted | |||||||
Non-current assets | |||||||
Property, plant and equipment | 924 | 1,258 | |||||
Current assets | |||||||
Trade and other receivables | (56) | (47) | |||||
Non-current liabilities | |||||||
Lease liabilities | (647) | (962) | |||||
Current liabilities | |||||||
Trade and other payables | 132 | 107 | |||||
Lease liabilities | (358) | (324) | |||||
Equity | |||||||
Accumulated losses reserve | £ (5) | £ 32 | |||||
Operating expenses | |||||||
Research and development | (336) | ||||||
General and administration | 341 | ||||||
Operating loss | 5 | ||||||
Finance costs | (12) | ||||||
Loss for the period | (7) | ||||||
Statement of Cash Flows | |||||||
Loss before income tax | (7) | ||||||
Adjusted for: | |||||||
Finance costs | 12 | ||||||
Depreciation | 83 | ||||||
Increase in trade and other receivables | 8 | ||||||
Increase in trade and other payables | (12) | ||||||
Financing activities | |||||||
Repayment of lease liabilities | (84) | ||||||
Impact on net cash flows | £ 0 | ||||||
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | ||||||
[2] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ | ||||||
[3] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Loss per share calculation (Det
Loss per share calculation (Details) - shares | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Earnings per share [abstract] | ||
Weighted average number of ordinary shares outstanding | 160,398,130 | 76,571,101 |
Revenue - Disclosure of detaile
Revenue - Disclosure of detailed information about revenue (Details) - GBP (£) £ in Thousands | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | £ 249 | £ 3,874 | [1] |
Licensing agreements | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 249 | 3,628 | |
Research collaboration agreement | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | £ 0 | £ 246 | |
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Revenue - Narrative (Details)
Revenue - Narrative (Details) £ in Thousands, $ in Thousands | Jan. 01, 2018 | Apr. 30, 2019GBP (£) | Apr. 30, 2018GBP (£) | Dec. 21, 2017USD ($) | Dec. 21, 2017GBP (£) | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Revenue | £ | £ 249 | £ 3,874 | [1] | |||
Eurofarma Revenue Agreement | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Deferred revenue | $ 2,500 | £ 1,900 | ||||
Eurofarma Revenue Agreement | Specified Development Milestones | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Specified milestone payments | $ | 3,750 | |||||
Eurofarma Revenue Agreement | Other Milestones | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Specified milestone payments | $ | 21,500 | |||||
Specified milestone payments, maximum cumulative net sales benchmark | $ | 100,000 | |||||
Specified milestone payments, cumulative net sales incremental benchmark | $ | $ 100,000 | |||||
Sarepta Revenue Agreement | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Research and development costs percentage, entity responsibility | 55.00% | |||||
Research and development costs percentage, third party responsibility | 45.00% | |||||
Research and development costs, minimum percentage of budgeted amount | 110.00% | |||||
Licensing agreements | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Revenue | £ | 249 | £ 3,628 | ||||
Licensing agreements | Eurofarma Revenue Agreement | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Revenue | £ | 120 | |||||
Licensing agreements | Sarepta Revenue Agreement | ||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||
Revenue | £ | £ 130 | |||||
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Other operating income (Details
Other operating income (Details) - GBP (£) £ in Thousands | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | ||
Disclosure of operating segments [line items] | |||
Research and development credit | £ 5 | £ 65 | |
Other income | 0 | 4 | |
Other operating income | 4,871 | 3,455 | [1] |
BARDA | |||
Disclosure of operating segments [line items] | |||
Grant income | 4,619 | 3,283 | |
CARB-X and Innovate | |||
Disclosure of operating segments [line items] | |||
Grant income | £ 247 | £ 103 | |
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Other operating income - Narrat
Other operating income - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Jul. 31, 2018USD ($) | Apr. 30, 2019GBP (£) | Apr. 30, 2018GBP (£) | Aug. 31, 2018USD ($) | Sep. 30, 2017USD ($) | |
Disclosure of operating segments [line items] | |||||
Income recognized in respect of BARDA | £ | £ 4,600,000 | £ 3,300,000 | |||
BARDA | |||||
Disclosure of operating segments [line items] | |||||
Cost sharing arrangement, initial portion | $ 32 | ||||
Cost sharing arrangement, additional portion | $ 12 | ||||
Cost sharing arrangement, total committed amount | $ 44 | ||||
Grant income recognized from CARB-X | £ | 4,619,000 | 3,283,000 | |||
BARDA | Top of range | |||||
Disclosure of operating segments [line items] | |||||
Cost sharing arrangement, contractual amount | $ 62 | ||||
CARB-X | |||||
Disclosure of operating segments [line items] | |||||
Cost sharing arrangement, contractual amount | $ 4.5 | ||||
Cost sharing arrangement, total committed amount | 2.5 | ||||
Grant income received | $ 2 | ||||
Grant income recognized from CARB-X | £ | £ 200,000 | £ 0 |
Segmental reporting (Details)
Segmental reporting (Details) | Apr. 30, 2019segment |
Operating Segments [Abstract] | |
Number of reportable segments | 1 |
Income tax (Details)
Income tax (Details) - GBP (£) £ in Thousands | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | ||
Income Taxes [Abstract] | |||
Current period research and development tax credit on qualifying expenditure | £ 705 | £ 1,036 | |
Tax credit / (expense) related to the US operations | 106 | (90) | |
Total current tax | 811 | 946 | |
Release of temporary difference relating to intangible asset | 31 | 0 | |
Total deferred tax | 31 | 0 | |
Total tax credit for the period | £ 842 | £ 946 | [1] |
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Leases - Narrative (Details)
Leases - Narrative (Details) £ in Millions | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2017 | Feb. 28, 2017 | Apr. 30, 2019GBP (£)contract | Jan. 31, 2019GBP (£) | Jan. 31, 2018GBP (£) | |
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Number of operating leases | contract | 2 | ||||
Right-of-use assets | £ | £ 1 | £ 1 | £ 1.4 | ||
Oxford, United Kingdom | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Lease term | 10 years | ||||
Cambridge, United Kingdom | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Lease term | 4 years |
Leases - Future minimum lease p
Leases - Future minimum lease payments under operating lease liabilities (Details) - GBP (£) £ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | ||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Minimum lease payments payable under non-cancellable operating lease | £ 976 | £ 1,065 | £ 1,388 | ||
Less: imputed interest | (51) | (60) | (102) | ||
Total lease liabilities | 925 | 1,005 | 1,286 | ||
Current lease liabilities | 358 | 358 | [1] | 324 | [1] |
Non-current lease liabilities | 567 | 647 | [1] | 962 | [1] |
Not later than nine months | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Minimum lease payments payable under non-cancellable operating lease | 269 | ||||
Not later than one year | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Minimum lease payments payable under non-cancellable operating lease | 358 | 323 | |||
Later than one year and not later than two years | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Minimum lease payments payable under non-cancellable operating lease | 358 | 358 | 358 | ||
Later than two years and not later than three years | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Minimum lease payments payable under non-cancellable operating lease | 294 | 294 | 358 | ||
Later than three years and not later than four years | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Minimum lease payments payable under non-cancellable operating lease | £ 55 | £ 55 | 294 | ||
Later than four years and not later than five years | |||||
Disclosure of maturity analysis of operating lease payments [line items] | |||||
Minimum lease payments payable under non-cancellable operating lease | £ 55 | ||||
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Leases - Lease cost and other i
Leases - Lease cost and other information (Details) - GBP (£) £ in Thousands | 3 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | ||
Lease cost | ||||
Depreciation | £ 87 | £ 87 | ||
Interest expense | 9 | 12 | ||
Total lease cost | 96 | 99 | ||
Other information | ||||
Operating lease payments | £ 89 | £ 84 | [1] | |
Weighted average remaining lease term | 2 years 8 months 12 days | 3 years | ||
Weighted average discount rate | 3.70% | 3.70% | ||
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Provisions and contingencies -
Provisions and contingencies - Disclosure of contingent liabilities (Details) - GBP (£) £ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Jan. 31, 2019 | |||
Disclosure of contingent liabilities [line items] | ||||
Beginning balance | [1] | £ 1,851 | £ 1,641 | |
Additions | 19 | |||
Unwinding of the discount factor | 52 | 191 | ||
Ending balance | 1,903 | 1,851 | [1] | |
Assumed contingent liabilities | ||||
Disclosure of contingent liabilities [line items] | ||||
Beginning balance | 1,657 | 1,466 | ||
Additions | 0 | |||
Unwinding of the discount factor | 52 | 191 | ||
Ending balance | 1,709 | 1,657 | ||
Dilapidations | ||||
Disclosure of contingent liabilities [line items] | ||||
Beginning balance | 150 | 150 | ||
Additions | 0 | |||
Unwinding of the discount factor | 0 | 0 | ||
Ending balance | 150 | 150 | ||
Royalties | ||||
Disclosure of contingent liabilities [line items] | ||||
Beginning balance | 44 | 25 | ||
Additions | 19 | |||
Unwinding of the discount factor | 0 | 0 | ||
Ending balance | £ 44 | £ 44 | ||
[1] | See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16 ‘Leases’ |
Provisions and contingencies _2
Provisions and contingencies - Narrative (Details) - GBP (£) £ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
The School Of Pharmacy, University Of London | ||
Disclosure of other provisions [line items] | ||
Financial liabilities | £ 1,000 | |
Financial liabilities, initial payment | £ 40 | |
Discuva Limited | ||
Disclosure of other provisions [line items] | ||
Contingent liabilities, discount factor | 13.00% | |
Contingent liabilities recognised as of acquisition date | £ 1,700 | £ 1,700 |
Share option scheme and Restr_3
Share option scheme and Restricted Stock Units - Movement in share options and RSUs (Details) | Apr. 23, 2019shares | Apr. 30, 2019GBP (£)shares | Apr. 30, 2018GBP (£)shares |
Weighted average exercise price [Abstract] | |||
Outstanding beginning balance (in Pounds per share) | £ | £ 0.35 | £ 1.43 | |
Granted during the period (in Pounds per share) | £ | 0.28 | 2.05 | |
Exercised during the period (in Pounds per share) | £ | 0 | 1.08 | |
Lapsed/surrendered during the period (in Pounds per share) | £ | 1.52 | 1.43 | |
Outstanding ending balance (in Pounds per share) | £ | £ 0.30 | £ 1.61 | |
Number of share options [Abstract] | |||
Outstanding beginning balance (in shares) | shares | 9,168,396 | 8,577,236 | |
Granted during the period (in shares) | shares | 11,396,000 | 3,461,428 | |
Exercised during the period (in shares) | shares | 0 | (92,047) | |
Lapsed/surrendered during the period (in shares) | shares | (205,410) | (250,000) | |
Outstanding ending balance (in shares) | shares | 20,358,986 | 11,696,617 | |
Weighted average exercise price - RSUs [Abstract] | |||
Outstanding beginning balance (in Pounds per share) | £ | £ 0.01 | £ 0.01 | |
Granted during the period (in Pounds per share) | £ | 0 | 0.01 | |
Exercised during the period (in Pounds per share) | £ | 0.01 | 0 | |
Outstanding ending balance (in Pounds per share) | £ | £ 0.01 | £ 0.01 | |
Number of RSUs [Abstract] | |||
Outstanding beginning balance (in shares) | shares | 814,256 | 275,877 | |
Granted during the period (in shares) | shares | 0 | 121,950 | |
Exercised during the period (in shares) | shares | (104,877) | (104,877) | 0 |
Outstanding ending balance (in shares) | shares | 709,379 | 397,827 |
Share option scheme and Restr_4
Share option scheme and Restricted Stock Units - Disclosure of share-based payment expense (Details) - GBP (£) £ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based payment expense | £ 128 | £ 545 |
Research and development | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based payment expense | 61 | 135 |
General and administration | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based payment expense | £ 67 | £ 410 |
Share capital (Details)
Share capital (Details) | Apr. 23, 2019GBP (£)shares | Apr. 30, 2019shares | Apr. 30, 2018shares |
Disclosure of classes of share capital [line items] | |||
Number of shares issued (in shares) | 104,877 | 104,877 | 0 |
Proceeds from exercise of restricted stock units | £ | £ 1,049 | ||
Ordinary shares | |||
Disclosure of classes of share capital [line items] | |||
Number of ordinary shares (in shares) | 160,494,758 |
Related-party transactions - Di
Related-party transactions - Disclosure of transactions between related parties (Details) - GBP (£) | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Other related party transactions | £ 0 | £ 0 |
Directors of the Company | ||
Disclosure of transactions between related parties [line items] | ||
Aggregate emoluments | 159,000 | 152,000 |
Pension contributions | 4,000 | 5,000 |
Employee benefits expense | 163,000 | 157,000 |
Directors of the Company and key management | ||
Disclosure of transactions between related parties [line items] | ||
Aggregate emoluments | 305,000 | 311,000 |
Pension contributions | 11,000 | 13,000 |
Employee benefits expense | £ 316,000 | £ 324,000 |