Proactive Investors - Run By Investors For Investors

Midatech Pharma soars as Chinese licensing deal is approved

Shareholder approval of the investment by China Medical Systems Holdings and A&B means that a licence agreement with both is now in force
Midatech will be entitled to sales-based milestone payments as well as royalty payments in China

Midatech Pharma PLC (LON:MTPH) shares soared as shareholders approved a strategic investment by Chinese billionaire Lam Kong.

Through his China Medical Systems Holdings and A&B (HK) vehicles, Lam Kong will acquire 77% of the Oxfordshire-based pharma for 3.85p per new share or a total consideration of £8mln.

READ: Chinese billionaire invests £8mln in AIM drug developer Midatech

A licence agreement with both is now in force, giving the billionaire exclusive rights to develop and commercialise Midatech’s assets in China, Hong Kong, Macau and Taiwan.

Craig Cook, Midatech’s chief executive said: “This is a key collaboration for Midatech that provides a strong endorsement of our technologies and pipeline whilst establishing a solid foundation for a successful and ambitious long-term partnership.”

Shares in the AIM-listed company jumped 11% to 4.45p in afternoon trading.

View full MTPH profile View Profile

Midatech Pharma PLC Timeline

Related Articles

Enzymes under a microscope
April 28 2019
The Florida company applies its proprietary C1 gene expression platform to speed up the development of biologic vaccines, drugs at flexible commercial scales
October 17 2018
The biotech was founded by an investment group led by scientists and driven by a no-nonsense CEO whose stake is more than just business as usual
Scientist at work
May 28 2019
CaPre, a potent form of Omega-3, has been shown to reduce triglycerides, but also lower 'bad cholesterol' levels, and raise 'good' ones

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use