On 20 April 2020, Midatech Pharma plc (Midatech) that it is undergoing a formal sale process (FSP) as part of its ongoing strategic review on 31 March 2020. The board is hoping to conclude the FSP by the third quarter of 2020.
Midatech have stated ‘prevailing conditions in the capital markets’ as the reason for implementing the strategic review. These conditions ultimately led to the biotech company being unable to raise sufficient funds for the timely completion of its Phase III clinical programme of MTD201 (for the treatment of the hormonal disorder, acromegaly) and the manufacturing scale-up of its Bilbao facility, despite $8.5 million in loans from the Spanish government. Closing the Bilbao facility and shutting any further inhouse developments of its MTD201 programme resulted in a total of 47 people being made redundant, including 5 UK-based employees.
The company also announced that, unless it is able to secure a grant under the SME, it may also have to cancel its GlioKIDS Phase II trial of MTX110, for the treatment of childhood brain cancer.
As part of the strategic review the board has stated that it is ‘considering all options for extracting value from its technologies. These include partnering its clinical stage assets; MTD201, MTX110 and MTX114 (for psoriasis) and/or partnering existing and upcoming proof of concept formulations’.
Market Tracker will continue to monitor this transaction as it develops.
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