A slimmed-down Midatech Pharma PLC (LON:MTPH) surged on Wednesday as it began on a “new chapter” where it aims to provide investors with two years packed with news flow about its proprietary drug delivery platforms.
After selling its US commercial business late last year, the company is now fully focused on developing its drugs pipeline, with the company’s two lead drugs entering human clinical trials.
Chief executive Craig Cook, who joined last summer, said he hoped this would set up a “value creating 18-24 months, rich in news flow and milestones for our programmes, platforms and the company, through 2019 and 2020”.
Cook said 2018 was “a year of strategic refocusing of the business” as a pure-play R&D company.
"We believe the company has entered a new chapter in its growth as a streamlined R&D focused business with in-house manufacturing. We are now delivering on clinical milestones, with strong clinical data, and a compelling pipeline for our proprietary drug delivery platforms, all of which are now into the clinic.
"We look forward to an exciting period ahead, creating value for all stakeholders."
After making a £10.4mln loss from continuing operations over the course of 2018, Midatech had £2.34mln cash and deposits in the bank at the end of December, down from £13.2mln a year before.
The boost since the year-end was due to the €1.5mln loan from the Basque regional government in January, then a £8mln strategic investment from China Medical System (CMS) and a £5.4mln fundraising from investors, both in February.
The deal with CMS “marks a genuine turning point”, said Cook, as the Chinese speciality pharmaceutical group’s purchase of a 51% stake was accompanied by a licence Midatech’s pipeline products in the Greater China Area and certain Southeast Asian countries. CMS will also pay Midatech milestones payments as its pipeline drugs notch up regulatory and sales-based targets.
Shares in Midatech, which is listed on London's AIM and the Nasdaq in New York, jumped more than 55% to 12.3p, more than a five-month high, on Wednesday afternoon as US investors woke up to the story.
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