Summit Biosciences receives grant to develop UK nasal spray substitute for medical marijuana

Editor's note: The Bluegrass Angels Venture Fund II invested in Summit Biosciences in 2010. Summit Biosciences, a specialty pharmaceutical company located at the UK Coldstream Research Campus, will develop a synthetic THC nasal spray product with funding from the qualifying therapeutic discovery project program. The nasal spray was developed by UK researcher Dan Wermeling in the College of Pharmacy to treat nausea and vomiting associated with cancer chemotherapy. The company recently raised $2 million out of $3.2 million in Series A financing and has 15 full time and 6 part time employees.

LEXINGTON, Ky. (Nov. 2, 2010)—Summit Biosciences Inc. announced today that it has been awarded a total of $147,886 in grants under the qualifying therapeutic discover project (QTDP) program established under Section 48D of the Internal Revenue Code. The Company submitted applications for its synthetic THC Nasal Spray product and a total of $147,886 has been approved for the project.

"We are excited to have the THC Nasal Spray development program recognized for these grants," said Greg Plucinski, Chief Operating Officer of Summit Biosciences Inc. "The cash awards will provide additional support for the development of our THC Nasal Spray and enable us to accelerate development without diluting our equity."

The QTDP program was established as a result of the Patient Protection and Affordable Card Act of 2010 to provide tax credits or grants to taxpayers with no more than 250 employees. Additionally, projects had to show reasonable potential to result in new therapies to treat areas of unmet medical need; prevent, detect, or treat chronic or acute disease and conditions; reduce long-term healthcare costs in the U.S.; or significantly advance the goal of curing companies with new biotechnologies that have the greatest potential to (a) create and sustain (directly or indirectly) high quality, high-paying jobs in the United States, and (b) advance United States competitiveness in the fields of life, biological, and medical sciences.

The Therapeutic Discovery Project grant applications were first reviewed by the US Treasury Department, and then were independently reviewed and evaluated by the Department of Health and Human Services in regard to their novelty, significance and fit with the grant program's goals.

More information can be found on the Company's Web site www.summitbiosciences.com.