TPI provides its latest research note on Midatech Pharma plc (MTPH.L)

Midatech has announced it has raised £10 million (gross) new funding through a UK equity placing (‘the Placing’) to new and existing UK investors at an issue price of 28.5p/share. Turner Pope acted as sole bookrunner to this Placing.

The Placing follows publication of the Group’s breakthrough data on successful encapsulation of a biologic using its Q-Sphera technology, along with details of significant progress across several of its other continuing internal and collaborative R&D programmes since announcing its strategic review some 13 months ago. The outcome was to halve cash burn while also adopting a more commercial approach to monetising its assets and technologies.

Midatech meanwhile had been seeking a means to take the Q-Sphera platform into new and innovative applications in order to fully exploit the opportunities it presents. Using its expertise to develop an in vitro activity assay that measures the ability of an exemplar therapeutic monoclonal antibody (’mAb’) to specifically combine with a carbonate antigen to demonstrate it can be correctly folded and functional, represents a potential ‘game changer’ for the global therapeutic market not only through sustained release but also local/targeted delivery to potentially create the world’s first long-acting protein.

Representing a scientific leap of significance for the global therapeutic sector, this news along with expectation of moving two indications for MTX110 forward into a potentially pivotal clinical trial for DIPG and a pilot Phase I for GBM in 2H 2021, delivery of two Q-Sphera proof-ofconcept (‘PoC’) formulations to collaboration partners plus similar outcomes for two internal programmes, suggests the remaining months of this year will be much heavier in prospectively exciting news flow for the Group.

 

We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Midatech Pharma plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

Copyright © 2021 Turner Pope Investments (TPI) Limited, all rights reserved.

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