20th Apr 2020 12:42
(Alliance News) - Midatech Pharma PLC on Monday said that while initial enquiries have been received regarding the sale of the company or its technologies, there have been no approaches so far.
Shares in Midatech slumped 31% to 16.50 pence at midday in London.
At the end of March 2020, Midatech said it has opted to terminate in house development of its MTD201 asset, closing down manufacturing facilities for MTD201 in Bilbao. This was a response both to "prevailing conditions in the capital markets" as well as its "inability to raise additional capital".
MTD201 was previously being developed by Midatech as a treatment for acromegaly and neuroendocrine tumours. Acromelagy is hormone disorder which can cause bones in the hands, feet, and face to get bigger. Neuroendocrine tumours affect the cells responsible for releasing hormones.
While the company's board it still open to all options that might enable the extraction of value from its technologies, including MTD201, it would also consider the sale of one of all of its technologies through a formal sale process.
Midatech's other clinical stage assets include MTX110, a possible childhood brain cancer treatment, and potential psoriasis drug MTX114.
The firm has appointed Florida-based investment bank Noble as its financial advisor while it seeks partners or possible offers, but none have been received so far.
"The company confirms that while it or its advisers have received initial enquiries from certain parties, it is not in discussions with any potential offeror at this time and nor has the company been in receipt of any approaches from any potential offeror at the date of this announcement," said Midatech.
Any party participating in the sale process would need to sign a non-discolsure agreement with Midatech. Following this, Midatech would provide "certain information on the group's business".
The strategic review it set to complete by the third quarter of 2020.
Chief Executive Stephen Stamp said: "We need to evaluate all available options for extracting maximum value from Midatech's platform technologies. I am confident that Noble is the ideal partner to help us do that for the benefit of all stakeholders."
By Anna Farley; [email protected]
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