--- ADDS BROKER COMMENT AND UPDATED SHARE PRICE ---
Fast growing drug delivery group Midatech’s (LON:MTPH, NASDAQ:MTP) pleased the market with an upgraded revenue forecast, as its paediatric brain tumour treatment was chosen for a programme by the Bristol Royal Infirmary.
The hospital has chosen Midatech’s glioblastoma treatment for its compassionate use programme to deliver an active therapeutic agent to a rare paediatric brain tumour.
Panmure Gordon said: “It signifies what we consider to represent a potential acceleration of the company’s programmes in brain cancer, notably in young children."
These highly aggressive and difficult-to-treat tumours are found at the base of the brain and occur almost exclusively in children.
“While this is a single programme for a rare disease it brings forward the in-human trials of the Midatech cancer therapeutic products very significantly,” the company said.
Panmure added: “We consider this a strong validation of Midatech’s platform and, if successful, could result in a fasttracked product to market where there is currently an unmet clinical need."
The firm also updated the market on its financial progress, which, as a result of recent acquisitions of oncology specialists DARA Biosciences and Zuplenz, shows sales will be ahead of market hopes.
Panmure Gordon said the news “helps to reaffirm our view on trading,” as it upped its full-year revenue expectations to £1.3mln from £1.2mln.
“In light of the confident trading update, the accelerated in-human application of the company’s technology in oncology and the, in our view, unjustified current share-price levels, we regard Midatech as a compelling investment,” the broker added.
Shares in the firm rocketed by lunch, up 15% to 205p.