24th Apr 2019 10:54
LONDON (Alliance News) - Midatech Pharma PLC on Wednesday reported a narrowed annual loss on the back of increased revenue generation and said that the company has entered into a "new chapter" following disposal of US unit and clinical progress.
In 2018, the company's pretax loss narrowed to GBP12.4 million from GBP13.0 million the year prior. This was after revenue more than doubled to GBP1.9 million from GBP989,000 the year before.
Profit performance remained constrained, however, by a rise in research & developments as well as other costs.
Cash levels fell to GBP2.3 million from GBP13.2 million the year prior. Since the year end, Midatech has secured a strategic investment of GBP8 million as well as raised GBP5.4 million through a placing.
"2018 was a year of strategic refocusing of the business, with Midatech becoming a pure-play R&D company following the divestment of our US commercial operation in November, a major milestone for the group," Midatech Chief Executive Craig Cook said.
In November, Midatech sold unit Midatech Pharma US Inc to Kanwa Holdings LP for up to USD19 million.
"We believe the company has entered a new chapter in its growth as a streamlined R&D focused business with in-house manufacturing," Cook added. "We are now delivering on clinical milestones, with strong clinical data, and a compelling pipeline for our proprietary drug delivery platforms, all of which are now into the clinic."
"We look forward to an exciting period ahead, creating value for all stakeholders", Cook concluded.
Shares in Midatech were 13% lower at 6.82 pence on Wednesday.
Related Shares:
MTPH.L