Midatech Pharma Plc (LON:MTPH, NASDAQMTP) has secured a US$15mln, four-year senior loan facility that will be used to bankroll the clinical development of two promising cancer drug candidates.
The funding has come via MidCap Financial, a middle market finance house, and Midtech has drawn down an initial US$7mln of the facility.
Access to the remainder of the cash will be dependent on MTD201 and MTX110 hitting certain milestones.
Clinical development of two key products
The former, also known as Q-Octreotide, is a long-acting treatment for a hormone disorder acromegaly and metastatic carcinoid tumours, while the latter is being developed to treat a type of brain tumour called diffuse intrinsic pontine glioma.
"This agreement allows us to continue the clinical development of key products,” said chief executive, Dr Jim Phillips.
“With the extensive due diligence that was required, it also indicates significant support in Midatech's future.
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“With our lead programmes heading towards potentially significant, value-driving inflection points in 2018, and the continued progress of our R&D pipeline and US commercial activities, this is an exciting time for the business."