London-listed pharma firm Midatech shares have soared today after it reported a 10-fold revenue increase for its first fiscal half.
Shares surged by almost 20 per cent after the London market open before paring back gains and are trading around 12 per cent higher at pixel time.
Midatech – which is focused on the US after acquiring Nasdaq-listed Dara last year – brought in revenue of £3.8m, up from £320,000 in the six months to June 2015.
The firm is developing treatments in the fields of oncology, immunology and other therapeutic areas.
Midatech's acquisition of Dara gave it a commercial arm in the US that has now launched anti-vomiting drug for chemo and radiotherapy patients, Zuplenz.
Jim Phillips, Midatech chief executive, said he expected further progress in the US in the second half of the year.
I am pleased to report that this has been a half of significant commercial progress for the company with a greater than 10-fold increase in revenue.
We have also had numerous positive advances at Midatech including launching Zuplenz in the US to provide relief from one of the most debilitating side-effects of common cancer treatments, and elsewhere across our oncology product base and exciting pipeline.
Since revising revenue guidance up earlier in the year we are pleased to expect revenues to be in line with current market expectations and look forward to continued progress in the second half of the year.
The firm also took the opportunity – probably because everyone else is doing it – to reassure investors the UK vote to quit the European Union has not yet had an impact on "the company's day-to-day operations".
It warned however it was "too early to assess the long-term impact" of the vote. Other big UK pharma firms have done well from the Brexit vote due to sudden fall in the pound and the industry's reputation as a safe haven in times of crisis.
Midatech will announce its interim results on 2 September 2016.