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Revenues fall amid 'extremely difficult period' at Midatech
16th Jun 2020 15:32
(Sharecast News) - Drug delivery technology company Midatech Pharma reported a fall in total gross revenue to £0.7m in its final results on Tuesday, from £1.9m year-on-year.
The AIM-traded firm said its statutory revenue for the year ended 31 December totalled £0.3m, rising from £0.1m.
It completed a subscription, placing and open offer in February 2019, raising £12.3m net, with a registered direct offering in the United States in October raising $2.5m (£1.8m) net.
The company received €3.6m (£3.1m) net from a non-dilutive Reindus loan, and was awarded a Guazatu loan of €1.5m.
It was also provisionally awarded a GlioKIDS grant of €2.7m (£2.3m), subject to confirmation of its status as a small-to-medium enterprise, to support a phase 2 trial of MTX110.
Cash and deposits as at 31 December stood at £10.9m, up from £2.3m year-on-year.
It reported a net loss from continuing operations of £9.1m, narrowing from £10.4m, with net cash inflows in the year of £8.4m, swinging from a £10.9m outflow in the prior year.
The company also reported a tax credit receivable of £1.8m, down slightly from the £1.9m it flagged 12 months prior.
On the operational front, Midatech made its first "substantive" licensing agreement with China Medical System Holdings (CMS) for its pipeline products for Greater China during the year.
That was accompanied by an £8m strategic investment in the company, as part of the subscription, placing and open offer executed in February 2019.
MTX110 received orphan drug designation for malignant glioma, including DIPG, from the US Food and Drug Administration, it reported.
"This has been an extremely difficult period for Midatech with the termination of in-house development of our lead programme, closure of our Bilbao operations and the loss of 47 jobs, over two-thirds of our employees," said chief executive and chief financial officer Stephen Stamp.
"I should like to recognise the professionalism of the team in making these difficult decisions and the grace with which they have been accepted.
"Our focus now is to evaluate all available options for extracting maximum value from Midatech's platform technologies."
At 1521 BST, shares in Midatech Pharma were down 4% at 19.2p.
The AIM-traded firm said its statutory revenue for the year ended 31 December totalled £0.3m, rising from £0.1m.
It completed a subscription, placing and open offer in February 2019, raising £12.3m net, with a registered direct offering in the United States in October raising $2.5m (£1.8m) net.
The company received €3.6m (£3.1m) net from a non-dilutive Reindus loan, and was awarded a Guazatu loan of €1.5m.
It was also provisionally awarded a GlioKIDS grant of €2.7m (£2.3m), subject to confirmation of its status as a small-to-medium enterprise, to support a phase 2 trial of MTX110.
Cash and deposits as at 31 December stood at £10.9m, up from £2.3m year-on-year.
It reported a net loss from continuing operations of £9.1m, narrowing from £10.4m, with net cash inflows in the year of £8.4m, swinging from a £10.9m outflow in the prior year.
The company also reported a tax credit receivable of £1.8m, down slightly from the £1.9m it flagged 12 months prior.
On the operational front, Midatech made its first "substantive" licensing agreement with China Medical System Holdings (CMS) for its pipeline products for Greater China during the year.
That was accompanied by an £8m strategic investment in the company, as part of the subscription, placing and open offer executed in February 2019.
MTX110 received orphan drug designation for malignant glioma, including DIPG, from the US Food and Drug Administration, it reported.
"This has been an extremely difficult period for Midatech with the termination of in-house development of our lead programme, closure of our Bilbao operations and the loss of 47 jobs, over two-thirds of our employees," said chief executive and chief financial officer Stephen Stamp.
"I should like to recognise the professionalism of the team in making these difficult decisions and the grace with which they have been accepted.
"Our focus now is to evaluate all available options for extracting maximum value from Midatech's platform technologies."
At 1521 BST, shares in Midatech Pharma were down 4% at 19.2p.