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Midatech Pharma PLC (MTPH)

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Wednesday 11 September, 2019

Midatech Pharma PLC

Receipt of Spanish Government Loan

RNS Number : 9678L
Midatech Pharma PLC
11 September 2019
 

11 September 2019

Midatech Pharma PLC

 

("Midatech" or the "Company")

 

Receipt of Spanish Government Loan for the scale up of

MTD201 commercial manufacturing facility

 

 

 

Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP), the R&D biotechnology company focused on delivering innovative oncology and rare disease products to patients, is pleased to announce that it has received funding of €6.6m (the "Loan") under the Spanish Government Reindustrialisation ("Reindus") programme to support the Company's manufacturing facility in Bilbao, Spain.  This brings the total public financing available for this project to up to €8.5m, including previous grant and loan amounts recently approved by the Basque regional government1.

 

Further to the announcement of 29 March 2019 (the "Loan Announcement"), the Loan is intended to fund activities to scale-up the manufacturing capability of Midatech's key MTD201 Q-Octreotide development product.  The total manufacturing cost of the project is currently estimated at approximately €16m subject to finalisation of the manufacturing strategy as detailed in the Company's 2018 results.  Midatech has provided a €2.9m guarantee (€2.6m relating to the principal loan amount as previously reported, plus a further €300k in respect of future interest) in the form of a cash bond in accordance with the terms of the Loan.  Other terms of the Loan are as set out in the Loan Announcement.  The Company continues to explore additional potential funding avenues for the remainder of the scale-up costs and for additional working capital.

 

MTD201 is a treatment for acromegaly and neuroendocrine (NET) tumours such as carcinoid cancer and is based on the Company's novel polymer microsphere technology, Q-Sphera™ for sustained release delivery.  The leading product currently in this US$2.5 billion market is Novartis' Sandostatin® LAR® ("SLAR"). 

 

As announced on 13 June 2019, the next phase of clinical development for MTD201 as a differentiated product is scheduled to commence in H2 2019, to support a first indication in acromegaly, comprising a short Phase I study in healthy volunteers, confirming the use of the sub-cutaneous administration route, followed thereafter by the pivotal trial in patients.

 

Notes

 

1 of which €1.5 million is subject to matched funding. 

 

For more information, please contact:

 

Midatech Pharma PLC

Dr Craig Cook, CEO

Tel: +44 (0)1235 888300

www.midatechpharma.com

 

Panmure Gordon (UK) Limited (Nominated Adviser and Broker)

Freddy Crossley, Emma Earl (Corporate Finance)

James Stearns (Corporate Broking)

Tel: +44 (0)20 7886 2500

 

IFC Advisory Limited (Financial PR and UK Investor Relations)

Tim Metcalfe / Graham Herring

Tel: +44 (0)20 3934 6630

Email: [email protected]

 

Westwicke Partners (US Investor Relations)

Chris Brinzey

Tel: +1 339 970 2843

Email: [email protected]

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).

 

 

About Midatech Pharma PLC

 

Midatech Pharma PLC (dual listed on LSE AIM: MTPH; and NASDAQ: MTP) is an R&D company focused on 'Making Medicines Better' by improving delivery of drugs in the body. The Company combines existing medications with its proprietary and innovative drug delivery technologies to provide compelling oncology and rare disease products that have the potential to powerfully impact the lives of patients undergoing treatment for life threatening diseases.

 

The Company has developed three in-house technology platforms, each with its own unique mechanism to improve delivery of medications to sites of disease. All of the Company's technologies have successfully entered human use in the clinic, providing important validation of the potential for each platform:

 

·    Q-Sphera™ platform: a disruptive micro-technology used for sustained release to prolong and control the release of therapeutics over an extended period of time (from weeks to months).

·    MidaSolve™ platform: an innovative nano-technology used to dissolve insoluble drugs so that they can be administered in liquid form directly and locally into tumours.

·    MidaCore™ platform: a leading edge nano-technology used for targeting medications to sites of disease.

 

By improving biodelivery and biodistribution of approved existing molecules, Midatech's unique R&D has the potential to make medicines better, lower technical risks, accelerate regulatory approval and route to market, and provide newly patentable products. The platform nature of the technologies allows the potential to develop multiple drug assets rather than being reliant on a limited number of programmes.

 

Midatech's headquarters and R&D facility is in Cardiff, UK, and manufacturing operation in Bilbao, Spain. For more information please visit www.midatechpharma.com

 

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of legislation in the United Kingdom and/or United States. Such forward-looking statements include, but are not limited to, statements regarding the ability of Midatech to successfully test, manufacture, produce or commercialize products for conditions using its technology platforms, and the ability for products in development to achieve positive clinical results, and the ability to meet or achieve timelines associated with pre-clinical studies, clinical trials or regulatory submissions. Any forward-looking statements are based on currently available competitive, financial and economic data together with management's views and assumptions regarding future events and business performance as of the time the statements are made and are subject to risks and uncertainties. We wish to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

Reference should be made to those documents that Midatech shall file from time to time or announcements that may be made by Midatech in accordance with the London Stock Exchange AIM Rules for Companies ("AIM Rules"), the Disclosure and Transparency Rules ("DTRs") and the rules and regulations promulgated by the US Securities and Exchange Commission, which contains and identifies other important factors that could cause actual results to differ materially from those contained in any projections or forward-looking statements. These forward-looking statements speak only as of the date of this announcement. All subsequent written and oral forward-looking statements by or concerning Midatech are expressly qualified in their entirety by the cautionary statements above. Except as may be required under the AIM Rules or the DTRs or by relevant law in the United Kingdom or the United States, Midatech does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise arising.

 


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