On April 30, 2021 Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP), a drug delivery technology company focused on improving the bio-delivery and biodistribution of medicines, reported its audited preliminary results for the year ended 31 December 2020 (Press release, Midatech Pharma, APR 30, 2021, View Source [SID1234578941]).
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Following the announcement of a Strategic Review in March 2020 and the termination of further in-house development of MTD201, the Company has broadened its R&D pipeline through technology collaborations with third party pharmaceutical companies, the initiation of new internal programmes and adding new indications to MTX110.
The Company’s realigned strategy is to advance its development programmes to proof of concept stage before seeking licensee partners to fund further development, manufacturing scale-up and commercialisation.
Stephen Stamp, CEO and CFO commented: "Last year was one of significant transition for Midatech following a Strategic Review, which was the catalyst for a re-evaluation of our priorities in the context of available resources. I am proud of the speed and agility with which we restructured and realigned our development and commercial strategy and halved our cash burn rate. These initiatives allowed us to refinance, extend our cash runway, expand our R&D pipeline and increase opportunities for partnering success."
2020 PERFORMANCE SUMMARY
Operational
·In January 2020, a study of subcutaneous administration of MTD201 compared with intramuscular administration in healthy volunteers showed similar pharmacokinetics and bioavailability, offering the potential for a differentiated, more patient-friendly product profile for Q-Sphera products.
·In March 2020, the Company announced a Strategic Review including termination of in-house development of MTD201, closure of the Company’s Bilbao operations and a re-alignment of the board. The Strategic Review was subsequently updated to include a ‘formal sale process’ under the Takeover Code.
·In June 2020, Midatech entered into its first research collaboration to apply Q-Sphera drug delivery technology to molecules nominated by Dr Reddy’s Laboratories Ltd ("Dr Reddy’s").
·In June 2020, the Company received a letter sent on behalf of Secura Bio, Inc. purporting to terminate an agreement to license certain patents of panobinostat, the active pharmaceutical ingredient of MTX110.
·In July 2020, Midatech added to its Q-Sphera business model with the announcement of a multi-product collaboration with a European affiliate of a global healthcare company.
·In October 2020, headline results of a Phase I study of MTX110 in DIPG were announced, including encouraging patient survival data.
·In November 2020, posters were presented at a meeting of the Society of Neuro-oncology (SNO) on MTX110 (1) Phase I results in DIPG and (2) preclinical data in adult glioblastoma ("GBM").
·In December 2020, posters were presented at a meeting of the International Symposium on Pediatric Neuro-oncologists (ISPNO) on MTX110: (1) in a Phase I study using an alternative Convection Enhanced Delivery ("CED") system; (2) administration via the fourth ventricle of the brain in a preclinical model, and (3) Phase I results in DIPG.
Post period end
·In January 2021, the Company announced a business update including expansion of the collaboration with the European affiliate of a global healthcare company from one to three active pharmaceutical ingredients ("APIs"), mutual termination of the Dr Reddy’s collaboration, expansion of the MTX110 development programme to include GBM, confirmation that the Company would not qualify for the GlioKIDS grant and closure of the Strategic Review in order to focus on the Company’s realigned strategy for its Q-Sphera technology and MTX110 whilst continuing to pursue licensing opportunities for its products and/or technologies.
·Progress of the Company’s internal Q-Sphera pipeline in CNS (MTD211) and in transplant anti-rejection (MTD214).
·Non-binding heads of terms entered into with a third party around the potential co-development of MTX110.
Financial
·Total gross revenue(1) for the year of £0.3m (2019: £0.7m, 2018: £1.9m).
·Statutory revenue(2) for 2020 of £0.2m (2019: £0.3m, 2018: £0.1m).
·Combined Placing in the UK and Registered Direct Offering in the US in May 2020 raised £3.7m, net of expenses.
·UK Placing in July 2020 raised £5.3m, net of expenses.
·Cash and deposits at 31 December 2020 of £7.5m (2019: £10.9m, 2018: £2.3m).
·Net loss from continuing operations of £22.2m (which includes non-cash impairment charges of £12.37m) (2019: £9.1m loss, 2018: £10.4m loss) with net cash outflow in the year of £3.6m (2019: £8.4m inflow, 2018: £10.9m outflow).
·Tax credit receivable of £1.2m (2019: £1.8m, 2018: £1.9m).
1)Total gross revenue represents collaboration income from continuing operations plus grant revenue.
2)Statutory revenue represents total gross revenue, excluding grant revenue.