Summit Therapeutics plc (NASDAQ:SMMT) Q2 2019 Earnings Conference Call - Final Transcript
Oct 11, 2019 • 08:00 am ET
GBP2.3 million from the second quarter of 2018. This decrease was primarily due to a net positive movement in exchange rate variances and the decrease in staff and facility related costs.
We reported a net loss for the second quarter ended July 31, 2019 of GBP5.2 million as compared to a net profit of GBP26.6 million during the second quarter of 2018 and this movement was driven by the previously discussed release of deferred revenue during the second quarter ended July 31, 2018.
I'd now like to discuss our current financial position and cash runway guidance. We ended our second quarter with cash and cash equivalents of GBP20.9 million or $25.5 million compared to GBP26.9 million at January 31, 2019.
We are guiding that our existing cash resources along with funds from our research and development cost sharing arrangements will be sufficient to fund the Company through at least January 31, 2020. Ridinilazole is an expensive project. Guidance for the next two years is it will need at least a further $140 million and we expect about $25 million of that will come from BARDA R&D tax credits, et cetera, leaving about $115 million [Phonetic] to be found, of which we expect to need about $50 million in the next financial year. As an antibiotics company, we're in the business of cures. Current medications are failing patients in a variety of infectious diseases.
And we have the opportunity to significantly improve their outcomes with our new classes of antibiotics. We are optimistic about the potential for ridinilazole as it progresses through its global phase 3 trials and longer term for our DDS-04 and SMT-571 programs. We believe, we have the right team and science for success. And with that, I'll open the line for questions.