Midatech Pharma PLC Announces Interim results - 6 months ended 30 June 2020

Rhea-AI Summary

Midatech Pharma PLC (AIM:MTPH.L)(NASDAQ:MTP) reported its interim results for H1 2020, with total revenue declining to £0.17m, down from £0.45m in H1 2019. R&D costs rose by 15% to £3.99m, driven by redundancy expenses of £0.88m and asset write-downs of £0.55m. Administrative expenses increased to £2.93m, reflecting one-time costs related to Spanish Government loans. The company raised £4.26m through the sale of shares in May and £5.75m in July, totaling £10.01m in funding. The cash balance was £4.33m as of June 30, 2020.

Positive

• Raised £4.26m through a Registered Direct Offering and Placing in May.
• Raised an additional £5.75m in July from an oversubscribed UK Placing.
• Initiated collaborations with major institutions, including Dr Reddy's Laboratories.

Negative

• Total revenue decreased to £0.17m, a drop from £0.45m a year earlier.
• Incurred significant impairment of intangible assets totaling £11.59m.
• Research and development costs increased by 15%, totaling £3.99m.

R&D Collaboration Strategy Gaining Traction

ABINGDON, OXFORDSHIRE / ACCESSWIRE / September 10, 2020 / Midatech Pharma PLC (AIM:MTPH.L)(NASDAQ:MTP), a drug delivery technology company focused on improving the bio-delivery and bio-distribution of medicines, announces its unaudited interim results for the six months ended 30 June 2020.

OPERATIONAL HIGHLIGHTS (including post period end)

·	In March, an exploratory study was initiated with MTX110 by Columbia University in five patients with DIPG using an alternative convection enhanced delivery system.
·	In March, the Company announced a wide-ranging Strategic Review, updated in April to include a Formal Sale Process under the Takeover Code. The Formal Sale Process was subsequently terminated in July.
·	In March, the decision was taken to terminate further in-house development of the MTD201 programme with immediate effect although the asset remains available for licensing. All activities connected with MTD201 have been wound down expeditiously and the manufacturing facilities in Bilbao have been closed. Following the termination of in-house development of MTD201, the Company realigned its strategy towards exploiting its Q-Sphera technology more broadly.
·	In April, an exploratory study was initiated with MTX110 by the University of Texas, Houston in five patients with recurrent medulloblastoma.
·	In June, the Company signed a research collaboration with Dr Reddy's Laboratories Ltd under which Midatech is deploying its in-house expertise and Q-Sphera drug delivery platform to medicines nominated by Dr Reddy's.
·	In July, the Company signed a collaboration with an unnamed European affiliate of a global pharmaceutical company, to establish the application of the Q-Sphera platform to new modalities in drug delivery.

FINANCIAL HIGHLIGHTS (including post period end)

·	Total revenue in H1 2020 was £0.17m (H1 2019: £0.45m). Total revenue represents income from R&D collaborations plus grant revenue.
·	Research and development costs increased by 15% to £3.99m (H1 2019: £3.46m) as a result of lower MTX110 development costs, redundancy costs of £0.88m and write-down of Spain assets of £0.55m, offset by a negative share-based payment charge of £0.35m.
·	Administrative expenses increased to £2.93m (H1 2019: £2.05m) and included £0.35m one-time costs associated with Spanish Government loans, £0.07m UK redundancy costs and a £0.51m increase in legal and professional fees.
·	Impairment of intangible assets of £11.59m (H1 2019: Nil) related to the termination of further in-house development of MTD201 and associated IPRD and goodwill.
·	Net cash used in operating activities (after changes in working capital) in H1 2020 was £7.09m, compared with £4.56m in H1 2019.
·	In May, in a concurrent Registered Direct Offering in the US and a Placing in the UK, the Company raised £4.26m before expenses through the sale of 15.76m ordinary shares at £0.27 per share and warrants exercisable for 16.55m ordinary shares at £0.34 per share.
·	In July, the Company raised an additional £5.75m before expenses in an oversubscribed UK Placing, including a Broker Option, through the sale of 21.3m ordinary shares at £0.27 per share with no warrants.
·	The cash balance at 30 June 2020 was £4.33m.

Click on, or paste the following link into your web browser, to view the full announcement.

http://www.rns-pdf.londonstockexchange.com/rns/5415Y_1-2020-9-9.pdf

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For more information, please contact:

Midatech Pharma PLC

Stephen Stamp, CEO, CFO

Tel: +44 (0)29 20480 180

www.midatechpharma.com

Panmure Gordon (UK) Limited (Nominated Adviser and Joint Broker)

Freddy Crossley, Emma Earl (Corporate Finance)

Rupert Dearden (Corporate Broking)

Tel: +44 (0)20 7886 2500

Turner Pope Investments (TPI) Limited (Joint Broker)

Andrew Thacker (Corporate Broking) Tel: +44 (0)20 3657 0050

IFC Advisory Limited (Financial PR and UK Investor Relations)

Tim Metcalfe / Graham Herring

Tel: +44 (0)20 3934 6630

Email: midatech@investor-focus.co.uk

Edison Group (US Investor Relations) Megan Paul Tel: +1 (646) 653 7034 Email: mpaul@edisongroup.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Midatech Pharma PLC

View source version on accesswire.com:
https://www.accesswire.com/605525/Midatech-Pharma-PLC-Announces-Interim-results--6-months-ended-30-June-2020

FAQ

What were Midatech Pharma's interim results for H1 2020?

Midatech Pharma reported total revenue of £0.17m for H1 2020, down from £0.45m in H1 2019.

How much funding did Midatech Pharma raise in May and July 2020?

Midatech Pharma raised £4.26m in May and £5.75m in July 2020, totaling £10.01m.

What were the R&D costs for Midatech Pharma in H1 2020?

Research and development costs increased by 15% to £3.99m in H1 2020.

What was the cash balance for Midatech Pharma at the end of June 2020?

The cash balance for Midatech Pharma at June 30, 2020, was £4.33m.

What impairment charges did Midatech Pharma incur in H1 2020?

Midatech Pharma incurred an impairment charge of £11.59m related to the termination of the MTD201 program.