- Basque Regional Government approves loan facility to support manufacturing facility in Bilbao
- Funds to be used as part of commercial scale up for MTD201 and Q-Sphera™ platform
Midatech Pharma (AIM: MTPH, Nasdaq: MTP), the R&D company focused on delivering innovative oncology and rare disease products to patients, today announces that further to the Company's announcement on 20 December 2018, the Basque regional government has approved further funding of EUR 1.5 million for the Company's manufacturing facility in Bilbao, Spain. The award, in the form of soft loan finance, follows receipt in 2018 of a related grant worth EUR 450k, and will be used as part of the commercial scale up for Midatech's MTD201 program and Q-Sphera™ technology platform.
The loan is part of the Basque government's Gauzatu Industry program, a Government funded program to support local SMEs in establishing infrastructure and capability for global industries. Separately, the Company is also applying for further funding from the Spanish Government's Reindus program, which focuses on the industrial growth of Spain. If successful, the combined funding from both programs, as well as potential EU financing, could fund the majority of the commercial scale up costs for MTD201 and the Q-Sphera technology.
Completion of the Bilbao scale up program, which is required to enable the filing of the New Drug Application (NDA) for MTD201 to the US Food and Drug Administration (FDA) and provide the commercial quantities required for MTD201 product launch and beyond, is expected to take up to 24 months. In addition, it will also provide a facility and blueprint for future Q-Sphera products. The Company is seeking further funding to support the continued development of MTD201 and to provide working capital as announced on 20 December 2018.
Q-Sphera is the next generation micro-encapsulation and polymer-depot sustained release (SR) drug delivery platform developed by Midatech using a novel and disruptive printing-based process, with substantial and distinct advantages over conventional technologies. From a manufacturing perspective, Q-Sphera is an improved microparticle manufacturing platform that is precise, scalable, efficient, and environmentally friendly. From a clinical profile perspective, it ensures homogenous microparticles that release active drug compounds into the body in a linear and controlled manner over an extended period of time. Q-Sphera also allows simpler and quicker reconstitution, improved injectability and less painful injections due to the smaller needle size required.
Commenting on the announcement, Dr Craig Cook, Chief Executive Office of Midatech Pharma, said: "This ongoing regional government support enables us to continue and potentially accelerate the progress of MTD201 development towards submission for approval, as well as further develop our Q-Sphera platform. We believe this sustained release technology has the potential to drastically improve the manufacturing process and clinical characteristics of existing drugs, providing more effective, convenient, precise and comfortable treatments for patients. We look forward to continuing the scale up program in Bilbao, as we work on driving MTD201 towards the market and establishing Q-Sphera as a leading platform in the multibillion dollar market for sustained release treatments."