making muscle wasting history

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Restructuring of Duchenne muscular dystrophy agreement with BioMarin

Summit and BioMarin have recently restructured their agreement for the Duchenne muscular dystrophy (DMD) programme, which was originally signed by the two parties in July 2008, and under which Summit received an equity investment of $7 million at the time.

Under the terms of the restructured deal, BioMarin has acquired full ownership of the DMD programme, including the preclinical candidate SMT C1100 (redesignated BMN-195). In particular, BioMarin has assumed all future preclinical and nonclinical development costs for SMT C1100 that were to be borne by Summit under the original licensing agreement. This is in exchange for a clinical development milestone of $1.0 million that was expected to be payable in 2010. While providing Summit with a short term cash flow advantage the overall effect on the Company’s financial position is broadly neutral.

Summit now remains eligible to receive success-based development and regulatory milestones of up to $50 million plus sales milestones of up to $85 million and tiered royalty payments rising to a low-teen percentage.