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Summit Corporation (SUMM)

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Tuesday 30 October, 2007

Summit Corporation

Interim Results

Summit Corporation PLC
30 October 2007

Summit Corporation plc
('Summit' or 'the Company')


Oxford, UK, 30 October 2007 - Summit Corporation plc (AIM: SUMM) announces its
interim results for the six months ended 31 July 2007.

A presentation to analysts will be held today at 09.30hrs at the offices of
Citigate Dewe Rogerson, 3 London Wall Buildings, London Wall, London, EC2M 5SY.
Please contact Mark Swallow or Yvonne Alexander on 020 7638 9571 for further


Drug Pipeline Progress

•        Two clinical and three preclinical programmes targeting serious
•        Phase I clinical trial commenced in Parkinson's disease and acne
•        Preclinical candidate in Duchenne muscular dystrophy programme selected

Early stage Programme Deals

•        Multi-million programme collaboration deal signed with Evolva Biotech

Profitable Technology Platforms

•        Gross margins over 60%
•        Increase in average deal size to £65,000 (H1 2006/07: £30,000)

Corporate Highlights

•        Acquisitions of two UK biotechnology companies in all-paper deals
•        Re-branding of Company to Summit plc

Financial Highlights

•        Trebling in half-year revenues to £1.4 million (H1 2006/07: £0.47m) as
         a result of organic growth and acquisitions
•        R&D investment up to £3.6 million (H1 2006/07: £1.3m)
•        Cash position of £14.2 million (H1 2006/07: £20.2m)

Barry Price, PhD, Chairman of Summit plc, said 'Summit has made a very strong
start to the year with excellent progress having been made in all areas of its
newly enlarged business. The acquisitions we made early in the year have helped
transform Summit and the coming months will be very exciting for the Company: we
expect to make significant progress in our two clinical and three preclinical
drug programmes; we are working hard towards delivering a major licensing deal
for at least one of these programmes; and we anticipate continued growth in the
technology platform service business.'

Summit also announced today that it has signed a $450,000 deal with one of the
world's top five pharmaceutical companies for use of its zebrafish technology
platform to assess the safety of its proprietary compounds.  Please see the
separate announcement for further details.

                                    - ENDS -

For more information, please contact:

Summit plc
Steven Lee, PhD, Chief Executive Officer                Tel: +44 (0)1235 443951
Darren Millington, ACMA, Chief Financial Officer
Richard Pye, PhD, Investor Relations

Citigate Dewe Rogerson
Mark Swallow / David Dible / Yvonne Alexander           Tel: +44 (0)207 638 9571

Evolution Securities
Tim Worlledge / Bobbie Hilliam / Neil Elliot            Tel: +44 (0)207 071 4300

About Summit plc

Summit plc is a leading UK biotechnology company that discovers and develops
proprietary new drugs. The Company's internal drug development programmes are
underpinned by its advanced carbohydrate chemistry and drug screening (chemical
genomics) technology platforms, which it also provides on a collaborative or
fee-for-service basis to the pharmaceutical industry.

Summit plc has a broad range of drug discovery programmes in the clinical,
pre-clinical and discovery stages of development, which target serious diseases
with a high unmet medical need. These therapeutic areas include neuro-disorders
(neurodegenerative and neuromuscular), anti-infectives, ophthalmic diseases,
oncology and regenerative medicines.

Summit plc's in-house drug development capabilities combine world-class
expertise in both carbohydrate chemistry with high-volume, high-content
screening using its proprietary zebrafish and fruitfly technologies (chemical
genomics). These whole organism screens have the potential to dramatically
decrease the time and cost of drug discovery and development by delivering data
that are highly predictive of the efficacy and toxicity of potential drug
compounds in humans.

The company listed on the AIM market of the London Stock Exchange in October
2004 - symbol: SUMM

Further information about the company is available at

This document contains 'forward-looking statements' within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as 'anticipates', 'intends', 'plans',
'seeks', 'believes', 'estimates', 'expects' and similar references to future
periods, or by the inclusion of forecasts or projections.

Forward-looking statements are based on the Company's current expectations and
assumptions regarding our business, the economy and other future conditions.
Because forward-looking statements relate to the future, by their nature, they
are subject to inherent uncertainties, risks and changes in circumstances that
are difficult to predict. The Company's actual results may differ materially
from those contemplated by the forward-looking statements. The Company cautions
you therefore that you should not rely on any of these forward-looking
statements as statements of historical fact or as guarantees or assurances of
future performance. Important factors that could cause actual results to differ
materially from those in the forward-looking statements and regional, national,
global political, economic, business, competitive, market and regulatory

Chairman and Chief Executive Statement

The first half of the year has seen your Company growing and maturing with
excellent progress being made in all areas of the business.  The period has seen
the completion of significant corporate activity, notably the acquisition and
integration of two companies and a change of Company name.  Following the
acquisitions, our drug pipeline has been broadened and now includes high-quality
clinical, preclinical and discovery stage programmes.  The Company has also
become the market-leader in its two technology platforms: zebrafish biology and
carbohydrate chemistry.  Significantly during this period, we signed our first
multi-million programme collaboration deal while several higher-value deals in
our service business have led to a trebling of revenues.

To reflect the progress the business has made, we have changed the Company's
name from VASTox plc to Summit Corporation plc, branded as Summit plc.  The new
identity reflects the ambitions we have for the Company and it will provide a
mature, professional image that is suitable for the future needs of the

Operational Highlights

Focussed Strategy to Deliver Value

Summit's primary objective is to generate mid- to long-term value by developing
and out-licensing multiple early stage drug programmes to pharmaceutical or
biotechnology company partners.  We believe that by efficiently developing a
number of programmes up to Phase IIa clinical proof of concept stage, we can
provide a pipeline of high-quality early stage drug candidates, much in demand
by the wider industry, while avoiding the cost and risk associated with Phase
IIb and Phase III clinical trials.

Supporting the drug pipeline are our two innovative technology platforms:
zebrafish biology and carbohydrate chemistry.  Both technologies are playing a
crucial role in developing our early stage programmes into attractive licensing
opportunities and will also help replenish our pipeline in the future as well as
generating increasingly significant revenues through our service business.

We believe that this strategy has the potential to improve the current risk:
reward ratio associated with the biotechnology industry by improving the
efficiency and lowering the costs of developing multiple drug candidates to a
point at which the wider industry is attributing increasing value.

Targeting Early Stage Deals

Significantly, in July 2007 we signed our first multi-million dollar programme
collaboration deal with the Swiss biotechnology company Evolva Biotech SA.  The
three-year deal, worth a potential $10 million, is for the co-development of SMT
14400 for the treatment of infectious diseases associated with bio-defence.
Evolva has received over $55 million in funding from the Defense Threat
Reduction Agency ('DTRA'), a US-government body specifically charged to develop
therapeutics to deal with terrorism and unconventional weaponry.  Both parties
retain equal ownership of the programme for infectious diseases, including any
value from future commercial deals.  Meanwhile, Summit will continue to develop
SMT 14400 as an immunotherapy to help treat cancer and the Company retains the
exclusive rights for this and any further indications identified for this
development candidate.

Acquisitions and Integration

In March 2007, Summit completed the acquisition of two UK biotechnology
companies, DanioLabs Limited and Dextra Laboratories Limited, in transactions
paid for with the issue of new shares for a combined figure of £16.5 million.
The companies were identified as having a synergistic fit with our existing
operations and have strengthened our research and development capabilities, drug
discovery pipeline and our service business.

The acquisition of DanioLabs significantly strengthened our drug discovery and
development pipeline by providing a range of high-quality programmes at the
clinical, preclinical and discovery stages of development, while both companies
have consolidated Summit's position as the world leaders in two innovative
technology platforms.  Dextra is now the brand name for Summit's carbohydrate
technology and service business.

The two companies have been quickly integrated to allow the enlarged
organisation to capitalise on the increased capabilities and efficiencies.  The
additional depth and quality in our pipeline and technology platforms will help
us to fulfil our business strategy.

Progress in Drug Discovery and Development Pipeline

The first half of 2007 has seen significant progress in our drug discovery and
development pipeline.  In October 2007, Summit began its first Phase I clinical
trial with the drug candidate SMT D002.  This candidate drug is being developed
to treat a skin condition called seborrhoea, which results from excess sebum
production and is a symptom of Parkinson's disease.  Seborrhoea is also the
primary cause of acne.  Results from this Phase I clinical trial with SMT D002
in healthy volunteers are anticipated in the first half of 2008, and an
additional Phase I trial is planned to start later the same year.

Summit is also advancing a second programme into clinical trials during 2007.
SMT D001 is being developed to treat a second distressing symptom associated
with Parkinson's disease called sialorrhoea which is characterised by excessive
and uncontrollable drooling.  A combined Phase I/II trial in Parkinson's
patients is planned to start in the final quarter of 2007 with data from the
trial expected during the first half of 2008.

Exciting progress was also made in our Duchenne muscular dystrophy (DMD)
programme, a fatal childhood disease for which there remains no cure.  The
preclinical candidate SMT C1100 was selected in May 2007 and work to progress
this into clinical trials is well advanced: SMT C1100 is expected to enter into
Phase I trials in the second half of 2008.  Additional complementary therapies
are also being developed to support and enhance our DMD programme with our
efforts supported by the leading UK muscular dystrophy charity, Parent Project
UK ('PPUK'), which donated £220,000 in September 2007.

Beyond our advanced clinical and preclinical development programmes, Summit has
a number of discovery stage projects across a range of therapeutic areas that
have progressed well over the first half of the year.

All our programmes utilise either or both technology platforms, and our
scientific and industrial expertise, as we seek to develop and add value to the
stage where they become attractive partnering opportunities.  In addition, the
integrated technology platforms will generate new drug programmes so that Summit
can continue to maintain a strong pipeline going forward.

Growing Services Revenues

During the first half of the year, revenues from the service business have
trebled to £1.4 million with gross margins in excess of 60%.  This increase was
a result of organic growth and revenues earned by DanioLabs and Dextra following
their acquisition in March 2007.  These acquisitions consolidated our
market-leading position in two innovative technology platforms, zebrafish
biology and carbohydrate chemistry, and this made an immediate impact on the
services business.  In zebrafish biology, we have now worked with seven of the
top ten pharmaceutical companies in the world.  The magnitude of the deals
signed during this period has increased with clients signing repeat contracts
following successful validation studies.  Notable deals have included contracts
with Johnson & Johnson, Merck and Rottapharm.  Pleasingly, data generated by our
zebrafish platform was presented at leading industry conferences in 2007 by
clients including AstraZeneca, Pfizer and Roche.

In carbohydrate chemistry, Dextra signed its first royalty paying deal with a US
healthcare company for which the Company earned $450,000 in fees and will
receive a 5% royalty on all product sales; the product is expected to launch in
2010.  In July, a GMP ('Good Manufacturing Practice') synthetic chemistry
laboratory became operational, producing sufficient quantities of material to
support clients' projects from early discovery through to Phase II clinical
trials.  This facility is of importance to Summit as it not only will further
enhance our carbohydrate chemistry platform but also will serve to reduce
internal costs and development times by using the manufacturing capability to
advance our own drug programmes.

Financial Review

Revenue trebled during the first six months of the year to £1.4 million (H1 2006
/07: £0.47m), reflecting higher value deals signed and the acquisition of
revenue-generating businesses DanioLabs and Dextra.

R&D investment rose in line with budget to £3.63 million (H1 2006/07: £1.30m) as
our main drug programmes reached the late-stage preclinical and clinical stages.
Notably, the increased revenues continue to cover our operational and overhead
costs, permitting us to make the necessary investment into R&D.

Financial discipline remains central to the business and we continue to ensure
all investors' funds have been used judiciously; our cash position at 31 July
2007 remains strong at £14.2 million (H1 2006/07: £20.2 million).  Additional
income of £0.3m (H1 2006/07: £nil) was also recognised during the period from
charities and grant agencies.

International Financial Reporting Standards

This is the first set of interim accounts to be produced under International
Financial Reporting Standards ('IFRS') as adopted by the European Union.
Comparative information for 2006/07 has been adjusted in accordance with IFRS.
A reconciliation between IFRS and UK GAAP is given in Note 5 of this report.


This is an exciting period for the business with several of our programmes
entering and advancing through clinical trials.  It is our intention to sign
attractive licensing and partnering deals from within our drug pipeline and
additionally we will look to sign significant collaboration deals in our
technology platforms in order to realise the value of our business strategy.  We
are confident that significant commercial progress will be made on both these

We take this opportunity to thank all staff, including those who have joined
Summit following the acquisitions, for their commitment and hard work during the
period and we look forward to an exciting future together.

Barry Price, PhD                           Steven Lee, PhD
Chairman                                   Chief Executive Officer

30 October 2007

Consolidated Income Statement (unaudited)
for the six months ended 31 July 2007
                                                       Six months             Six months                   Year
                                                            ended                  ended                  ended
                                                          31 July                31 July             31 January
                                                             2007        2006 (Restated)        2007 (Restated)
                                       Note                 £000s                  £000s                  £000s

Revenue                                                     1,378                    469                  1,034

Cost of sales                                               (531)                  (155)                  (304)

Gross profit                                                  847                    314                    730

Other operating income                   3                    298                      -                     80

Operating expenses
Research and development                                  (3,637)                (1,300)                (2,952)
General and administration                                  (750)                  (402)                  (950)
Sales and Marketing                                         (411)                   (88)                  (510)
Depreciation and amortisation                               (782)                  (113)                  (376)
Share based payment                                         (257)                  (155)                  (404)
                                                          (5,837)                (2,058)                (5,192)

Operating loss                                            (4,692)                (1,744)                (4,382)

Finance income                                                406                    412                    873

Loss before taxation                                      (4,286)                (1,332)                (3,509)

Taxation                                                      590                    167                    489

Loss for the period attributable to                       (3,696)                (1,165)                (3,020)
equity shareholders

Basic and diluted loss per ordinary      4                (8.02p)                (3.21p)                (8.25p)

Consolidated balance sheet (unaudited)
At 31 July 2007

                                                 Six months               Six months                      Year
                                                      ended                    ended                     ended
                                                    31 July                  31 July                31 January
                                                       2007      2006     (Restated)                    2007
                                                      £000s                    £000s                     £000s
Non-current assets
Goodwill                                             10,467                        -                       115
Other intangible assets                               8,517                       58                       263
Property, plant and equipment                         3,426                    1,848                     2,624
                                                     22,410                    1,906                     3,002
Current assets
Inventories                                             274                       29                       188
Trade and other receivables                           1,846                      689                       645
Current tax                                           1,111                      167                       472
Cash and cash equivalents                            14,208                   20,213                    18,289
                                                     17,439                   21,098                    19,594

Total assets                                         39,849                   23,004                    22,596

Current liabilities
Trade and other payables                            (1,910)                    (271)                   (1,382)
Borrowings                                             (66)                     (66)                      (66)
Total current liabilities                           (1,976)                    (337)                   (1,448)

Non-current liabilities
Provisions                                          (2,665)                        -                     (100)
Borrowings                                            (564)                    (611)                     (598)
Deferred tax                                        (2,314)                        -
Total non-current liabilities                       (5,543)                    (611)                     (698)

Total liabilities                                   (7,519)                    (948)                   (2,146)

Net assets                                           32,330                   22,056                    20,450

Share capital                                         4,963                    3,722                     3,722
Share premium account                                22,722                   22,327                    22,327
Share based payment reserve                             735                      229                       478
Merger reserve                                       11,740                  (1,943)                   (1,943)
Retained earnings                                   (7,830)                  (2,279)                   (4,134)
Total Equity attributable to the                     32,330                   22,056                    20,450
shareholders of the Company

Consolidated cash flow statement (unaudited)
for the six months ended 31 July 2007

                                                              Six months           Six months                 Year
                                                                   ended                ended                ended
                                                                 31 July              31 July           31 January
                                                                    2007      2006 (Restated)      2007 (Restated)
                                                       Note        £000s                £000s                £000s

Cash flows from operating activities
Operating loss before tax                                        (4,692)              (1,744)              (4,382)

Adjusted for:
Depreciation                                                         379                  109                  340
Amortisation of intangible fixed assets                              403                    4                   36
Share based payment                                                  257                  155                  404
Adjusted loss from operations before changes in                  (3,653)              (1,476)              (3,602)
working capital and provisions

Increase in trade and other receivables                            (528)                 (30)                (171)
Increase in inventories                                             (16)                  (2)                (160)
Increase/(decrease) in trade and other payables                       63                (444)                  727
Cash used by operations                                          (4,134)              (1,952)              (3,206)

Taxation Received                                                      -                    -                  168
Net cash used in operating activities                            (4,134)              (1,952)              (3,038)

Investing activities
Acquisition of businesses net of cash acquired            2          493                    -                (255)
Purchase of property, plant and equipment                          (836)                (653)              (1,648)
Purchase of intangible assets                                        (1)                    -                 (71)
Interest received                                                    415                  294                  790
Net cash used in investing activities                                 71                (359)              (1,184)

Financing activities
Proceeds from issue of share capital                                  16                9,971                9,971
Repayment of debt during the period                                 (34)                 (80)                 (93)
Net cash used in financing activities                               (18)                9,891                9,878

Net (decrease)/increase in cash and cash equivalents             (4,081)                7,580                5,656

Cash and cash equivalents at beginning of period                  18,289               12,633               12,633

Cash and cash equivalents at end of period                        14,208               20,213               18,289

Consolidated statement of changes in equity (unaudited)
Six months ended 31 July 2007

Group                    Share capital Share premium        Share based      Merger      Retained         Total
                                 £000s       account    payment reserve     reserve      earnings
                                               £000s              £000s       £000s         £000s         £000s
At 1 February 2007               3,722        22,327                478     (1,943)       (4,134)        20,450
New share capital issued         1,241           395                  -           -             -         1,636
Share based payment                  -             -                257           -             -           257
Share issue eligible for             -             -                  -      13,683             -        13,683
merger relief
Loss for the period                  -             -                  -           -       (3,696)       (3,696)
At 31 July 2007                  4,963        22,722                735      11,740       (7,830)        32,330

Six months ended 31 July 2006

Group                    Share capital Share premium        Share based      Merger      Retained         Total
                                 £000s       account    payment reserve     reserve      earnings
                                               £000s              £000s       £000s         £000s         £000s

At 1 February 2006               3,131        12,947                 74     (1,943)       (1,114)        13,095
New share capital issued           591         9,380                  -           -             -         9,971
Share based payment                  -             -                155           -             -           155
Loss for the period                  -             -                  -           -       (1,165)       (1,165)
At 31 July 2006                  3,722        22,327                229     (1,943)       (2,279)        22,056

Year ended 31 January 2007

Group                    Share capital Share premium        Share based      Merger      Retained         Total
                                 £000s       account    payment reserve     reserve      earnings
                                               £000s              £000s       £000s         £000s         £000s
At 1 February 2006               3,131        12,947                 74     (1,943)       (1,114)        13,095
New share capital issued           591         9,380                  -           -             -         9,971
Share based payment                  -             -                404           -             -           404
Loss for the period                  -             -                  -           -       (3,020)       (3,020)
At 31 July 2006                  3,722        22,327                478     (1,943)       (4,134)        22,450

Notes to the interim results

1.      Basis of accounting

The interim accounts, which are unaudited, have been prepared on the basis of
the accounting policies expected to apply for the financial year to 31 January
2008.  As from 1 February 2007, the Group is required under European Union
regulation to prepare its annual financial statements in accordance with
International Financial Reporting Standards (IFRSs) as endorsed by the European
Union and implemented in the UK. Accordingly, this is the first year when the
financial statements will be prepared under IFRS and the comparatives for 2007
will be restated from UK Generally Accepted Accounting Practice (UK GAAP) to
comply with IFRS.

The IFRSs that will be effective or available for voluntary early adoption in
the financial statements for the period ended 31 January 2008 are still subject
to change and to the issue of additional interpretation(s) and therefore cannot
be determined with certainty.  Accordingly, the accounting policies for that
annual period that are relevant to this interim financial information will be
determined only when the first IFRS financial statements are prepared at 31
January 2008.

The interim financial statements do not include all of the information required
for full annual financial statements and do not comply with all the disclosures
in IAS 34 'Interim Financial Reporting'. Accordingly, whilst the interim
statements have been prepared in accordance with the transitional rules
governing the move from UK GAAP to IFRS they cannot be construed as being in
full compliance with IFRS.

Reconciliations between previously reported financial statements prepared under
UK GAAP and on the basis as stated above are presented in note 5 to this Interim
Statement in respect of the Consolidated Income Statement for the year ended 31
January 2007 and the six months ended 31 July 2006 and for the Consolidated
Balance Sheet as at 1 February 2006, 31 July 2006 and 31 January 2007. No
adjustments have been made for any changes in estimates made at the time of
approval of the UK GAAP financial statements for the year ended 31 January 2007
or the interim statements for the period ended 31 July 2006 on which the IFRS
financial information is based, as required by IFRS 1. In addition, restated
figures in note 5 are based on current interpretations of IFRSs and these may be
subject to change as industry practice develops.

The comparative figures for the twelve months ended 31 January 2007 do not
constitute statutory accounts for the purposes of Section 240 of the Companies
Act 1985. The results for the year ended 31 January 2007 and the balance sheet
as at that date are abridged from the Company's Annual Report and Financial
Statements 2007 (after adjustment for IFRS conversion), which have been
delivered to the Registrar of Companies.  The auditors' report on those accounts
was unqualified, did not include references to any matters to which the auditors
drew attention by way of emphasis without qualifying their report and did not
contain a statement under section 237(2) or 237(3) of the Companies Act 1985.
The 31 July 2007 statements were approved by a duly appointed and authorised
committee of the Board of Directors on 30 October 2007 and are unaudited.

A summary of the principal accounting policies is set out below:

Basis of consolidation

The consolidated financial statements incorporate the financial statements of
the Group and entities controlled by the Group made up to the reporting date.
Control is achieved where the Company has the power to govern the financial and
operating policies of an investee entity so as to obtain benefits from its

The results of subsidiary undertakings acquired or disposed of in the year are
included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal, as appropriate. Where
necessary, adjustments are made to the financial statements of subsidiaries to
bring the accounting policies used into line with those used by the Group.

All intra-group transactions, balances, income and expenses are eliminated on

Business Combinations

The cost of an acquisition is measured as the fair value of the assets
exchanged, equity instruments issued and liabilities incurred or assumed at the
date of exchange, plus costs directly attributable to the acquisition.
Identifiable assets acquired together with liabilities and contingent
liabilities assumed in a business combination are measured initially at their
fair values at the acquisition date. The excess of the cost of acquisition over
the fair value of the identifiable net assets is recorded as goodwill.


Goodwill representing the excess of the cost of acquisition over the fair value
of the Group's share of the identifiable net assets acquired is capitalised and
reviewed annually for impairment. Goodwill is carried at cost less accumulated
impairment losses.

Negative goodwill arising on acquisition is recognised directly in the Income

Intangible Assets

In-process research and development that is separately acquired as part of a
Company acquisition or in-licensing agreement is required by IAS38 to be
capitalised even if they have not yet demonstrated technical feasibility, which
is usually signified by regulatory approval.  Intangible assets relating to
business combinations are amortised as described in note 2.

Other intangible assets, comprising patents and licenses are amortised in equal
instalments over their useful estimated lives as follows:

Patents (once awarded):               10 years
Drug programmes:                      Over the period of the relevant patents
Licenses:                             Over the period of the licence agreement

Impairment of assets

For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating
units). As a result, some assets are tested individually for impairment and some
are tested at cash generating unit level. Goodwill, other individual assets or
cash-generating units that include goodwill and other intangible assets with an
indefinite useful life are tested for impairment at least annually.

An impairment loss is recognised for the amount by which the asset's or
cash-generating unit's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of fair value, reflecting market conditions
less costs to sell, and value in use based on an internal discounted cash flow
evaluation. Impairment losses recognised for cash-generating units, to which
goodwill has been allocated, are credited initially to the carrying amount of
goodwill. Any remaining impairment loss is charged pro rata to the other assets
in the cash generating unit. With the exception of goodwill, all assets are
subsequently reassessed for indications that an impairment loss previously
recognised may no longer exist.

Property, plant and equipment

Property, plant and equipment are stated at cost less depreciation.  Cost
comprises the purchase price plus any incidental costs of acquisition and
commissioning.  Depreciation is calculated to write off the cost, less residual
value, in equal annual instalments over their estimated useful lives as follows:

Leasehold improvements                Over the period of the remaining lease
Computer equipment                    3-5 years
Laboratory equipment                  3-10 years
Fixtures and fittings                 3-5 years

The residual value, if not insignificant, is reassessed annually.


Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, where it is probable that an outflow
of resources will be required to settle the obligation, and where a reliable
estimate can be made of the amount of the obligation. If the effect of the time
value of money is material, the expected future cash flows will be discounted
using a pre-tax discount rate, adjusted for risk where it is inherent in a
specific liability.

Revenue recognition

i) Goods sold and services rendered

Group revenue comprises the value of sales from products and income (excluding
VAT and taxes, trade discounts and intra-Group transactions) derived from
contracts for services.

Revenue from product sales is recognised when the risks and rewards of ownership
have been transferred to the customer.

Where the Group is to undertake R&D activities and the fee is creditable against
services provided by the Group, that revenue is recognised across the period
over which the services are performed.

Contract research fees are recognised in the accounting period in which the
related work is carried out.

Revenue is recognised according to the percentage of the overall contract that
has been completed.

ii) Grant income

Grant related income is shown in the income statement as other income, so as to
match it against the expenditure to which it compensates.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction.  Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange ruling at the balance sheet
date.  All differences are taken to the income statement.


Inventories are stated at the lower of cost and net realisable value.  Net
realisable value is based on estimated selling price, less further costs
expected to be incurred on completion and disposal.  Provision is made for
obsolete, slow-moving or defective items where appropriate.

Employee benefits

All employee benefit costs, notably holiday pay, bonuses and contributions to
Company or Personal defined contribution pension schemes are charged to the
Income Statement on an accruals basis.

Leased assets

Costs in respect of operating leases are charged to the income statement on a
straight line basis over the lease term.

Research and development

All ongoing research expenditure is currently expensed in the period in which it
is incurred. Due to the regulatory and other incentives inherent in the
development of the Group's products, the criteria for development costs to be
recognised as an asset, as set out in IAS38  'Intangible Assets', are not met
until a product has been submitted for regulatory approval and it is probable
that future economic benefit will flow to the Group. The Group currently has no
qualifying expenditure.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held on call with
the bank.  For the purposes of the Cash Flow Statement, cash and cash
equivalents are as defined above, net of outstanding bank overdrafts.

Share based payments

In accordance with IFRS 2 - 'Share based payment', share options are measured at
fair value at their grant date.  The fair value is calculated using the
Black-Scholes formula and charged to the income statement on a straight-line
basis over the expected vesting period.  At each balance sheet date, the Group
revises its estimate of the number of options that are expected to become
exercisable.  The share-based payment charge is recorded separately in the
income statement.

2.      Acquisition of subsidiaries and businesses

On 21 March 2007 the Group acquired 100% ownership of DanioLabs Limited and
Dextra Laboratories Limited.

DanioLabs Limited

DanioLabs is a biotechnology company based in Cambridge that has clinical drug
programmes in neurodegeneration, commercial services and complementary zebrafish
expertise.  100% ownership was acquired for consideration of £15.1m, of which
14.2m was in the form of shares. The transaction incurred legal and professional
fees of £170k.

Dextra Laboratories Limited

Dextra Laboratories based in Reading has world-leading expertise in industrial
carbohydrate chemistry.  100% ownership was acquired for consideration of £1.5m
in the form of shares.  The transaction incurred legal and professional fees of

MNL Pharma

On 14 December 2006, Summit Corporation plc acquired the trade and certain
assets from MNL Pharma Limited. Provisional values were reported in the 2007
Annual report, with the valuation and classification revised in the period to 31
July 2007.

                                        DanioLabs Limited                  Dextra                MNL Pharma
                                     Recognised value and            Laboratories          Recognised value
                                          carrying amount                 Limited              and carrying
                                                                 Recognised value                    amount
                                                                     and carrying
                                                    £000s                   £000s                     £000s
Cash                                                  983                      48                         -
Inventories                                             -                      70                         -
Accounts receivable                                   150                     246                         -
Property, plant and equipment                         209                      37                        55
Trade payables                                      (342)                   (125)                         -
                                                    1,000                     276                        55
Intangible assets established on                    7,460                       -                     1,381
Tangible assets established on                        100                       -                         -
Goodwill on acquisition                             8,712                   1,420                       335
Deferred tax on Intangible assets                 (2,089)                       -                     (335)
                                                   15,183                   1,696                     1,436

Satisfied in cash                                     343                     196                       255
Deferred cash consideration                             -                       -                     1,181
Satisfied in shares                                13,356                   1,500                         -
Deferred share consideration                        1,484                       -                         -
Consideration paid                                 15,183                   1,696                     1,436

In-process Research and Development costs were capitalised on acquisition, and
relate to various ongoing drug programmes. The fair value of these programmes is
estimated by discounting the expected future cash flows of the programme,
adjusted for outcome probability at each potential stage of the programme. These
assets are amortised on a straight line basis over a period equal to the
residual life of the relevant patents held.

3.      Other Operating Income

Other operating income consists entirely of grant income.

4.      Loss per share calculation

The loss per share has been calculated by dividing the loss for the period of
£3,696k (for the period ended 31 July 2006: £1,165k, and for the year ended 31
January 2007: restated loss of £3,020k) by the weighted average number of shares
in issue during the six month period to 31 July 2007: 46,111,292 (for the six
month period ended 31 July 2006: 35,577,079; for the year ended 31 January 2007:

Since the Group has reported a net loss, diluted loss per share is equal to
basic loss per share.

5.  Reconciliation of UK GAAP to IFRS

The tables on the following pages show the reconciliations of the Consolidated
Income Statement for the six months ended 31 July 2006 and the financial year
ended 31 January 2007, the Consolidated Balance Sheet as at 31 July 2006, 31
January 2007 and at 1 February 2006 (Opening balances at the date of

Consolidated Income Statement (unaudited)

                                           UK GAAP                 IFRS         UK GAAP                  IFRS
                                        Six months           Six months            Year                   Year
                                             ended                ended           ended                 ended 
                                           31 July              31 July      31 January            31 January
                                              2006   Adj.          2006            2007     Adj.         2007           
                                Ref          £000s  £000s         £000s             £000s  £000s        £000s

Revenue                                        469      -           469             1,034      -        1,034

Cost of sales                                (155)      -         (155)             (304)      -        (304)

Gross profit                                   314      -           314               730      -          730

Other operating Income                           -      -             -                80      -           80

Administrative expenses

Research and development         1.1       (1,284)   (16)       (1,300)           (2,937)   (15)      (2,952)

General and administration       1.2         (734)    332         (402)           (1,830)    880        (950)

Sales and marketing              1.3             -   (88)          (88)                 -  (510)        (510)

Depreciation and amortisation    1.4             -  (113)         (113)                 -  (376)        (376)

Share based payment              1.5             -  (155)         (155)             (404)      -        (404)

Total Administrative expenses              (2,018)              (2,058)           (5,171)             (5,192)

Operating loss                             (1,704)   (40)       (1,744)           (4,361)   (21)      (4,382)

Finance income                                 414      -           414               873      -          873
Finance costs                   1.6           (20)     18           (2)                 -      -            -

Loss on ordinary activities                (1,310)   (22)       (1,332)           (3,488)   (21)      (3,509)
before taxation

Taxation                                       167      -           167               489      -          489

Loss on ordinary activities                (1,143)   (22)       (1,165)           (2,999)   (21)      (3,020)
after taxation

Explanation of IFRS adjustments:
                                                                       Six months ended        Year ended
                                                                           31 July 2006   31 January 2007
                                                                                   Adj.              Adj.
                                                                                  £000s             £000s

Ref 1.1 Research & Development
Holiday pay accrual (Research & development related)                               (16)              (15)

Ref 1.2 - General & Administration
Reclassification as below                                                           354               883
Holiday pay accrual (General and administration related)                            (4)               (3)
Reclassification of rental payment and finance costs                               (18)                 -
                                                                                    332               880

Ref 1.3 - Sales and Marketing
Reclassification from General and administration expenses                          (86)             (507)
Holiday pay accrual (Sales and marketing related)                                   (2)               (3)
                                                                                   (88)             (510)

Ref 1.4 - Depreciation and amortisation
Reclassification from General and administration expenses                         (113)             (376)

Ref 1.5 - Share based payments
Reclassification from General and administration expenses                         (155)                 -

Ref 1.6 - Finance income and costs
Reclassification of rental payment and finance costs                                 18                 -

Consolidated Balance Sheet (unaudited)

                             UKGAAP             IFRS        UKGAAP             IFRS        UKGAAP             IFRS
                                Six              Six          Year                           Year             Year
                             months           months      ended 31             Year      ended  1            ended
                           ended 31         ended 31       January         ended 31      February                1
                          July 2006   Adj. July 2006          2007   Adj.   January          2006   Adj.  February
                                                                               2007                           2006
                     Ref      £000s  £000s     £000s         £000s  £000s     £000s         £000s  £000s     £000s
Non-current assets
Goodwill                          -      -         -           115      -       115             -      -         -
Other intangible                 58      -        58           263      -       263            28      -        28
Property, plant and           1,848      -     1,848         2,624      -     2,624         1,261      -     1,261
                              1,906      -     1,906         3,002      -     3,002         1,289      -     1,289
Current assets
Inventories                      29      -        29           188      -       188            27      -        27
Trade and other                 689      -       689           645      -       645           542      -       542
Current tax                     167      -       167           472      -       472             -      -         -
Cash and cash                20,213      -    20,213        18,289      -    18,289        12,633      -    12,633
                             21,098      -    21,098        19,594      -    19,594        13,202      -    13,202

Total assets                 23,004      -    23,004        22,596      -    22,596        14,491      -    14,491

Current liabilities
Trade and other      2.1      (249)   (22)     (271)       (1,361)   (21)   (1,382)         (639)      -     (639)
Borrowings                     (66)      -      (66)          (66)      -      (66)          (66)      -      (66)
Total current                 (315)   (22)     (337)       (1,427)   (21)   (1,448)         (705)      -     (705)

Provisions                        -      -         -         (100)      -     (100)             -      -         -
Borrowings                    (611)      -     (611)         (598)      -     (598)         (691)      -     (691)
Total non-current             (611)      -     (611)         (698)      -     (698)         (691)      -     (691)

Total liabilities             (926)   (22)     (948)       (2,125)   (21)   (2,146)       (1,396)      -   (1,396)

Net assets                   22,078   (22)    22,056        20,471   (21)    20,450        13,095      -    13,095

Share capital                 3,722      -     3,722         3,722      -     3,722         3,131      -     3,131
Share premium                22,327      -    22,327        22,327      -    22,327        12,947      -    12,947
Share based payment  2.2          -    229       229           478      -       478             -     74        74
Merger reserve              (1,943)      -   (1,943)       (1,943)      -   (1,943)       (1,943)      -   (1,943)
Retained earnings    2.3    (2,028)  (251)   (2,279)       (4,113)   (21)   (4,134)       (1,040)   (74)   (1,114)
Total Equity                 22,078   (22)    22,056        20,471   (21)    20,450        13,095      -    13,095

Explanation of IFRS adjustments:

                                                                  Six months       Year ended       Year ended 1
                                                                       ended       31 January      February 2006
                                                                     31 July             2007               Adj.
                                                                   2006 Adj.             Adj.
                                                                       £000s            £000s              £000s

Ref 2.1 - Trade and other payables
Holiday accrual established under IAS19                                 (22)             (21)                  -

Ref 2.2 - Share based payment reserve
Presentation of Share based payment as a separate class of               229                -                 74
equity reserve

Ref 2.3 - Retained earnings
Presentation of Share based payment as a separate class of             (229)                -               (74)
equity reserve
Holiday accrual established under IAS19                                 (22)             (21)                  -
                                                                       (251)             (21)               (74)

Independent review report to Summit Corporation plc (formerly VASTox plc)

We have been instructed by the company to review the financial information for
the six months ended 31 July 2007 which comprises the Consolidated Income
Statement, Consolidated Balance Sheet, Consolidated Cash Flow Statement,
Consolidated Statement of Changes in Equity and the related notes. We have read
the other information contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies with the
financial information.

Our report has been prepared in accordance with the terms of our engagement to
assist the company in meeting the requirements of the London Stock Exchange for
companies trading securities on the Alternative Investment Market and for no
other purpose.  No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so by
our prior written consent.  Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.  The directors
are responsible for preparing the interim report, in accordance with the rules
of the London Stock Exchange for companies trading securities on the Alternative
Investment Market which require that the half-yearly report be presented and
prepared in a form consistent with that which will be adopted in the company's
annual accounts having regard to the accounting standards applicable to such
annual accounts.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom by auditors
of fully listed companies.  A review consists principally of making enquiries of
Company management and applying analytical procedures to the financial
information and underlying financial data and based thereon, assessing whether
the accounting policies and presentation have been consistently applied unless
otherwise disclosed.  A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions.  It is
substantially less in scope than an audit performed in accordance with
International Standards on Auditing (UK and Ireland) and therefore provides a
lower level of assurance than an audit.  Accordingly we do not express an audit
opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 July 2007.


Chartered Accountants


30 October 2007

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