Summit execs sharpen the budget ax as Duchenne MD study flops — shares routed at Sarepta partner
Summit Therapeutics $SMMT has crushed high expectations for its Duchenne muscular dystrophy drug, reporting today that their therapy completely failed a key trial. Execs at the biotech say they’re now dumping the drug — the focus of an $842 million deal with Sarepta — and prepping a restructuring needed to survive the setback.
The 48-week Phase II trial failed at the primary as well as secondary level, researchers say, leaving nothing worthwhile to pursue in a late-stage study. The entire program is being scrapped now, and the news hit shares hard, with the stock plunging 77%.
Sarepta $SRPT had partnered with Summit on the drug — providing $40 million upfront with R&D support — looking to move beyond its fragile success with their experimental Exondys51. That drug was approved for DMD after a bruising internal dispute at the FDA — but on the market with a label that says there’s still no solid evidence of its efficacy.
The Oxford-based Summit saw its shares surge back at the beginning of the year on positive preliminary results, with their utrophin modulator ezutromid demonstrating a 23% decrease in myosin. But biomarker activity is no stand-in for a disease like DMD.
Sarepta too has relied heavily on biomarker data for its therapies, bagging a notable but very early success with a gene therapy for the disease.
Summt is now planning some painful cost cutting, which likely means a reduction in headcount.
“While we believe utrophin modulation could still have a place in the treatment of DMD, it is clear that ezutromid is not providing a benefit for patients,” said CEO Glyn Edwards. “We therefore feel that our resources are better focused on the development of our promising pipeline of new mechanism antibiotics.”