Summit Therapeutics plc acquired privately held U.K.-based Discuva Ltd. to strengthen its antibiotics business.
Discuva's principal asset is a genetics-based technology platform for the generation of antibiotics.
"With the acquisition, Summit is positioned as a leader in the research and development of new classes of antibiotics as exemplified by our precision antibiotic candidate ridinilazole for the treatment of C. difficile infection," Summit CEO Glyn Edwards said in a Dec. 23 news release. "Using this platform, we aim to generate a pipeline of new mechanism of action antibiotics that address other serious infectious disease threats."
Under the merger agreement, the consideration to Discuva shareholders is made up of £5.0 million in cash and £5.0 million in new ordinary shares of Summit of one penny nominal value issued to Discuva shareholders at a price of 170.4 pence per share, representing a 3.3% premium to Summit's midmarket closing share price on Dec. 22.
Summit purchased Discuva on a cash-free/debt-free basis. No Discuva employees will be joining Summit's board.