Midatech Pharma PLC MTX110 Update & Headline Results for 2020 (4113T)
March 25 2021 - 02:00AM
UK Regulatory
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.
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