“We are excited at the prospect of our products progressing in the clinic and making a difference for patients and create value for our shareholders,” the company said alongside interim results.
Its two key drug candidates are MTD201 and MTX110.
The former is being developed to treat acromegaly, where the body produces too much growth hormone, and neuroendocrine tumours, which affect hormone-releasing cells. A development plan is currently being finalised following a successful phase I trial.
MTX110 has been created to treat an aggressive brain cancer called diffuse intrinsic pontine glioma, which affects children. A first-in-human study “continues to progress well”, Midatech said. It has been well tolerated by patients so far. The dose-escalation part of the trial is set to conclude in the fourth quarter to be followed by a phase II assessment of efficacy.
Investment by China Medical Systems (CMS), along with a share placing, brought in £13.4mln, which secures the firm’s cash runway “into 2020”.
It has also received the promise of public finance for the scale-up operations in the Basque region of Spain.
As is common for companies at this formative stage of development, Midatech was loss-making. The loss from continuing operations fell £1.2mln to £4.42mln as administrative and R&D costs fell year on year in the six months ended June 30. The cash balance as of that date was £9mln.
“The first half of this year saw us achieve some important milestones,” said chief executive Craig Cook.
“Alongside a successful fundraise we secured our largest ever licensing partnership for our technology with CMS.
“We have moved our in-house programmes forward and now have a clear, deliverable development plan for our lead product MTD201, together with the exciting potential of our MTX110 programme, with further clinical data expected from both programmes in the near term."