TIDMMTPH

RNS Number : 4113T

Midatech Pharma PLC

25 March 2021

25 March 2021

Midatech Pharma PLC

("Midatech" or the "Company")

Non-binding Heads of Terms for Co-development of MTX110

and

Unaudited Headline Results for the Year Ended 31 December 2020

Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP), a drug delivery technology company focused on improving the bio-delivery and biodistribution of medicines, announces the Company has agreed non-binding Heads of Terms for the co-development of MTX110 and its unaudited headline results for the year ended 31 December 2020.

MTX110 - Non-binding Heads of Terms

On 26 January 2021, the Company announced that it was engaged in tentative discussions with a third party around the potential co-development of MTX110. These discussions have now advanced and a non-binding Heads of Terms has been agreed.

The Heads of Terms envisage that, if the deal progresses to definitive agreements, the Company would expect to receive a modest upfront payment upon execution, success-based development and sales milestones and royalties typical for a licensing agreement with products in a similar stage of development. R&D expenses would be assumed by the two parties with the apportionment to be agreed based on their respective territories. There can be no assurance on the timing for concluding these discussions nor any assurance that the parties will enter into definitive agreements. Further announcements will be made in due course, as appropriate.

Unaudited 2020 Headline Results

In March 2020, the Company announced a strategic review of its operations which led to the termination of further in-house development of MTD201, closure of its Spanish subsidiary, Midatech Pharma España SL ("MPE"), and the MTD201 dedicated manufacturing facilities in Bilbao, Spain.

The closure of MPE resulted in an immediate halving of the Company's cash burn rate and significant savings in R&D and administrative expenses going forward. Included in the unaudited headline results for 2020 are R&D expenses and administrative costs of GBP2.8 million and GBP1.1 million, respectively, in respect of MPE.

Also in connection with the termination of MTD201, the Company has recognised a non-cash impairment loss in 2020 for in-process development of GBP9.3 million and goodwill of GBP2.3 million. In addition, in connection with the purported termination of the Company's licence for panobinostat from Secura Bio, Inc. in June 2020, the Company has recognised a non-cash impairment of an intangible asset relating to the licence agreement of GBP0.8 million as of 31 December 2020.

Midatech's headline unaudited results, including MPE, for the year ended 31 December 2020 compared with the prior year are as follows:

 
                                  Year ended 31 December 
                               ------------------------- 
                                   Unaudited     Audited 
                                        2020        2019 
                                        GBPm        GBPm 
 
 Revenue                                 0.2         0.3 
 Grant revenue                           0.1         0.4 
                               -------------  ---------- 
 Total revenue                           0.3         0.7 
                               -------------  ---------- 
 
 Research and development              (6.1)       (7.8) 
 Administrative costs                  (5.0)       (3.8) 
 
   (Non- cash) Impairment of          (12.4)          -- 
   intangible assets 
 
 Loss before tax                      (23.5)      (10.9) 
                               -------------  ---------- 
 
 
                                     At 31 December 
                               ------------------------- 
                                   Unaudited     Audited 
                                        2020        2019 
                                        GBPm        GBPm 
 
 Cash and cash equivalents               7.5        10.9 
 
 

The Company expects to publish its audited results for the year ended 31 December 2020 by the end of April 2021.

The Company's consolidated financial statements for the financial year ended 31 December 2020 (the "Period") are not yet available and our independent registered public accounting firm, Mazars LLP, has not completed its audit of the consolidated financial statements for the Period. The Company's expectations with respect to its unaudited results for the Period are based upon management estimates. The estimates set forth in this announcement were prepared based upon a number of assumptions, estimates and business decisions that are inherently subject to significant business and economic conditions and competitive uncertainties and contingencies, many of which are beyond the Company's control. This summary is not meant to be a comprehensive statement of Midatech's unaudited financial results for the Period and the actual results may differ from these estimates.

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

For more information, please contact:

 
  Midatech Pharma PLC 
 Stephen Stamp, CEO, CFO 
 Tel: +44 (0)1235 888300 
 www.midatechpharma.com 
 
 Panmure Gordon (UK) Limited (Nominated Adviser and Joint Broker) 
 Freddy Crossley, Emma Earl (Corporate Finance) 
 Rupert Dearden (Corporate Broking) 
 Tel: +44 (0)20 7886 2500 
 
  Turner Pope Investments (TPI) Limited (Joint Broker) 
 Andrew Thacker / Zoe Alexander (Corporate Broking) 
 Tel: +44(0)20 3657 0050 
 
 IFC Advisory Limited (Financial PR and UK Investor Relations) 
 Tim Metcalfe / Graham Herring 
 Tel: +44 (0)20 3934 6630 
 Email: midatech@investor-focus.co.uk 
 
 Edison Group (US Investor Relations) 
  Megan Paul 
  Tel: +1 (646) 653 7034 
  Email: mpaul@edisongroup.com 
 
       About Midatech Pharma PLC 
         Midatech Pharma PLC (dual listed on LSE AIM: MTPH; and NASDAQ: 
         MTP) is a drug delivery technology company focused on improving 
         the bio-delivery and biodistribution of medicines. The Company 
         combines approved and development medications with its proprietary 
         and innovative drug delivery technologies to provide compelling 
         products that have the potential to powerfully impact the lives 
         of patients. 
 
         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(TM) 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(TM) platform: an innovative nanotechnology 
               used to dissolve insoluble drugs so that they can be 
               administered in liquid form directly and locally into 
               tumours. 
 
 
          *    MidaCore(TM) platform: a leading-edge nanotechnology 
               used for targeting medications to sites of disease. 
 
 
 
         The platform nature of the technologies offers the potential to 
         develop multiple drug assets rather than being reliant on a limited 
         number of programmes. Midatech's technologies are supported by 
         36 patent families including 120 granted patents and an additional 
         70 patent applications. Midatech's headquarters and R&D facility 
         is in Cardiff, UK. 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 Private Securities Litigation Reform 
  Act. All statements contained in this press release that do 
  not relate to matters of historical fact should be considered 
  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. 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCJIMLTMTITBIB

(END) Dow Jones Newswires

March 25, 2021 03:00 ET (07:00 GMT)

Midatech Pharma (LSE:MTPH)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Midatech Pharma Charts.
Midatech Pharma (LSE:MTPH)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Midatech Pharma Charts.