Proactive Investors - Run By Investors For Investors

Midatech Pharma shares soar as it receives €6.6mln from Spanish government

The company has been conditionally granted a Reindustrialisation loan
sterile room
The cash will go towards developing a manufacturing facility in Bilbao

Midatech Pharma PLC (LON:MTPH) shares soared higher on Friday as the firm said the Spanish government had conditionally approved a €6.6mln Reindustrialisation, or Reindus loan that will be used to help commercialise its flagship drug.

In all, the group has received around €8.5mln of public backing towards the estimated €16mln costs to build a plant in Bilbao to manufacture its MTD201 Q-Octreotide development product.

READ: Midatech Pharma soars as Chinese licensing deal is approved

MTD201 is a treatment for a hormonal disorder called acromegaly and neuroendocrine tumours such as carcinoid cancer. It is based on the company's polymer microsphere technology, Q-Sphera, which provides a sustained release method of delivery.

Chief executive Craig Cook said the Reindus loan would provide “a real boost” to the commercial manufacturing scale-up scheduled over the next 18-24 months in Bilbao.

“For our lead programme MTD201, completion of the commercial manufacturing is required prior to submitting for marketing authorisation in the US and EU, and the Reindus loan allows us to plan and move ahead with more confidence,” he added.

The loan, which will be provided at a coupon of 1.6%, requires Midatech to provide a €2.6mln guarantee. Repayments begin three years after drawdown over a 10-year term.

In late morning trading, Midatech shares were up 25% to 7p.

 -- Adds share price --

View full MTPH profile View Profile

Midatech Pharma PLC Timeline

Related Articles

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
A double helix and a medical person
March 06 2019
Leronlimab, according to the company, is an antiviral agent candidate with fewer side effects, lower toxicity and less frequent doses than daily HIV therapies now in use
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

© 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