17th Sep 2021 10:37
(Alliance News) - Midatech Pharma PLC on Friday reported a narrower first-half loss as it gears up for talks to license its products to drugmakers following successful trials.
The Cardiff-based company, which develops drug delivery technology, saw its pretax loss narrow to GBP3.4 million in the first half of 2021, from GBP17.9 million year-on-year. Last year's interim results were affected by an GBP11.6 million impairment after Midatech terminated the development of a product.
Revenue, which Midatech gets from research and development contracts and grants, more than doubled to GBP401,000 from GBP168,000.
The results were delayed from the scheduled publication time of 0700 BST, eventually being released around 0930 BST.
Shares were up 3.9% to 26.50 pence each in London on Friday morning.
Midatech said it made significant progress across several research and development programmes in the period, and achieved breakthrough data for its Q-Sphera drug capsule technology, creating "several opportunities for licensing".
"Our current funding position buys us time and flexibility to convert opportunities into licenses and we are fully focused on meeting that challenge over the coming months," the company said.
Following a GBP10.0 million share placing in June, Midatech now has enough cash to last until the first quarter of 2023, assuming no money from licensing deals. The cash balance on June 30 was GBP4.2 million.
Stephen Stamp, Midatech's chief executive and chief financial officer, said: "The first half of 2021 has been highly productive with three potentially viable Q-Sphera formulations, one internal and two for a collaboration partner.
"We believe the breakthrough data on the encapsulation of a protein could prove to be a very significant opportunity for Midatech."
By Ivan Edwards; [email protected]
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