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Midatech narrows losses ahead of 2018 'inflection points'
(WebFG News) - Pharmaceutical company Midatech Pharma narrowed losses in its most recent trading year as gross revenues expanded just short of one-third on an improved US sales performance.
Midatech's total gross revenues for the calendar year grew 31% to £12.08m, the majority of which was a result of product sales generated by its US commercial business of £11.13m - itself a 49% year-on-year increase.
However, the Oxford-based group, which had three separate drugs still in the research and development phase throughout the year, booked a net loss after tax of £16.06m, a 20.34% improvement on 2016's figures, as the cost of that same R&D ballooned from £7.8m to £10.19m. On the bright side, the US business was breakeven at the EBITDA level in the second half of the year.
Midatech saw positive clinical trial readouts for Q-Octreotide, for carcinoid cancer, with a pivotal trial this MTD201 programme expected to begin in April, and also made regulatory submissions to the US Food & Drug Administration on the MTX110 stem cell programme for paediatric brain cancer cancer, where a potentially pivotal Phase I/II trial should begin before long.
Elsewhere, the AIM-listed company embarked on a study of Gelclair, a product already available for a complication of cancer called oral mucositis.
In order to fund its extensive drug pipeline, Midatech entered into a senior secured $15m loan agreement with MidCap Financial Trust in the fourth quarter of 2017, $7m of which has been received with the remaining $8m dependent on clinical development milestones. There was £13.2m of net cash at the period end.
Midatech's chief executive officer, Dr Craig Cook, said, "2017 was a year of significant change and progress for Midatech. We have continued the development of our three lead oncology drug candidates and we now have exciting value inflection points coming up in 2018. Additionally, we made good progress with our immunotherapy assets, which are now advancing toward potential clinical development. Our US commercial business recorded solid growth, achieving a breakeven EBITDA in the second half of the year."
"With additional funding secured, we are well-resourced to drive towards our clinical objectives. We are enthused by the prospect of delivering transformative therapies to improve patients' lives and progressing our R&D pipeline forward to address unmet needs in significant markets, driving future profitability and creating value for stakeholders," Cook added.
As of 1340 BST, shares had declined 11.11% to 24.00p.