Midatech narrows losses and sells US commercial arm as it pushes cancer treatments to market
Midatech Pharma has narrowed losses as it pushes its cancer treatments to market and announces the sale of its US commercial arm to focus on R&D.
The Alternative Investment Market-listed company reported that revenue for the six months to 30 June rose 17 per cent to £549,000 and pre-tax losses were down to £6.5m from £6.7m.
It said its three programmes, treatments for carcinoid cancer, brain cancer and its autoimmune diabetes vaccine were progressing well.
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Midatech also announced the sale of its US commercial arm, which provides supportive care to cancer patients to manage the impact of chemotherapy, for $19m (£14.4m) to Kanwa Holdings, an investment vehicle affiliated with investment management firm Barings.
The money will be used to focus on R&D to deliver products to patients with cancer or rare diseases – as part of a streamlining of the business.
Particular focus will be put on advancing its MTD201 treatment for carcinoid cancer, a rare hormonal cancer, which usually begins in the digestive tract.
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Chief executive Dr Craig Cook said he hoped to carve out a share of the $2bn market “dominated” by Novartis for two decades.
Cook said: “We have worked around the intellectual property and from the data we have seen, it seems we have a better product.
“We are in talks with the FDA on the quickest route to market, whether that would be a comparable product or differentiated product.”
He added: “The first half of 2018 has been a period of significant change and good progress for the reshaped Midatech business.
“We are now seeing the rewards of refocusing and streamlining the business, resetting and hitting the clinical timelines, and restructuring internally.”