29th Mar 2019 10:27
LONDON (Alliance News) - Midatech Pharma PLC on Friday said it received approval of a EUR6.6 million loan from the Spanish government for commercial scale-up of the company's cancer treatment MTD201 Q-Octreotide.
Midatech shares were trading 30% higher at 7.30 pence each on Friday morning.
The reindustrialisation loan will accrue interest at a rate of 1.6%, with repayments due to commence three years after drawdown. The repayment period is 10 years.
The new loan brings the total public financing available for this project to EUR8.5 million, including previous amounts approved by the Basque regional government, Midatech explained.
However, the total manufacturing cost of the project is currently estimated at around EUR16 million. It is being manufactured in the northern Spanish city of Bilbao, in the Basque region.
MTD201 is a treatment for acromegaly and neuroendocrine tumours such as carcinoid cancer.
"The Reindus loan is a real boost to our commercial manufacturing scale up scheduled over the next 18 to 24 months in Bilbao and, together with other alternative options under consideration by the board such as strategic manufacturing partnerships, can provide all our manufacturing needs in the medium to long term," Midatech Chief Executive Officer Craig Cook commented.
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