25th Mar 2021 17:42
Midatech Pharma PLC - AIM-listed drug delivery technology company - Agrees for the co-development of MTX110 following tentative discussions with a third party since the end of January. Notes that, if the deal progresses to definitive agreements, it 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. Research & development expenses would be assumed by the two parties with the apportionment to be agreed based on their respective territories.
Separately, Midatech Pharma says a strategic review of its operations led to the termination of further in-house development of MTD201, closure of its Spanish subsidiary, and the MTD201 dedicated manufacturing facilities in Bilbao, Spain. The closure resulted in an immediate halving of the company's cash burn rate and significant savings in researc & development and administrative expenses going forward.
In addition, Midatech Pharma expects to report 2020 revenue of GBP200,000 compared to GBP300,000 a year ago, with pretax loss widening to GBP23.5 million from GBP10.9 million in 2019. The company expects to publish its 2020 results by the end of April.
Current stock price: 29.90 pence, down 5.1% on Thursday
Year-to-date change: up 13%
By Evelina Grecenko; [email protected]
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