11th Sep 2019 12:09
(Alliance News) - Midatech Pharma PLC's shares surged on Wednesday as said it has received a EUR6.6 million loan from the Spanish government to finance manufacturing work in its facility in Bilbao, northern Spain.
Shares in Midatech were 25% higher at 6.55 pence each in London on Wednesday afternoon.
Public funding for the manufacturing of MTD201 cancer treatment now totals EUR8.5 million. It previously received financing from the Basque regional government, Midatech explained.
The loan, which was approved in March, will accrue interest at a rate of 1.6%, with repayments due to commence three years after drawdown. The repayment period is 10 years.
Total manufacturing costs of the project are estimated to be EUR16.0 million, Midatech said.
MTD201 specifically treats acromegaly and neuroendocrine tumours such as carcinoid cancer, a slow progressing form of the disease.
The market is worth USD2.5 billion and the leading product is Novartis International AG's Sandostatin drug, Midatech added.
The next phase to MTD201's development is scheduled to commence in the second half of 2019.
Related Shares:
MTPH.L