Audited financial results for the year ended 31 December 2018
Midatech Pharma (AIM: MTPH; Nasdaq: MTP), the R&D company focused on delivering innovative oncology and rare disease products to patients, today announces its audited financial results for the twelve-month period ended 31 December 2018.
- Total gross revenue(1) for the year from continuing operations up 96% to £1.94m (2017: £0.99m, 2016: £1.32m).
- Statutory Revenue(2) for 2018 was the same as the prior year at £0.15m (2017: £0.15m, 2016: £0.78m).
- £2.34m cash and deposits at 31 December 2018 (2017: £13.20m, 2016: £17.61m).
- Net loss from continuing operations of £10.37m (2017: £11.71m, 2016: £6.16m) with net cash outflow in the year of £10.88m (2017: £4.15m outflow, 2016: £0.97m inflow).
- Tax credit receivable of £1.95m (2017: £1.20m, 2016: £1.44m).
- Repayment of outstanding loan with MidCap Financial Trust of £5.25m (excluding early redemption fees).
Operational highlights including post period end highlights
- MTD201 Q-Octreotide for neuroendocrine tumours and acromegaly: conducted first in-human clinical trial with data read-out in August 2018, indicating that MTD201 compares favourably with the leading product in the market.
- MTX110 for DIPG childhood brain cancer: commenced first in-human clinical trial in May 2018 at University of California San Francisco (study ongoing).
- Sale of US commercial operation, Midatech Pharma US, Inc. ("MPUS") on 1 November 2018, to Barings LLC, effected through Kanwa Holdings LP, which was established solely for the purpose of acquiring MPUS. This achieved proceeds of £10.20m before deal costs.
- Closure of the Group's research and development facility in Abingdon in December 2018, with ongoing gold nanoparticle research activities incorporated into the Group's Cardiff and Bilbao sites.
- Following the year end, strategic investment in the Company by China Medical System ("CMS") of £8m plus agreement to licence the Group's pipeline products in the Greater China Area and certain South East Asian countries.
- In conjunction with the subscription by CMS, the Company concluded a successful Placing and Open Offer, raising an additional £5.4m, approved by shareholders on 25 February 2019.
- Appointment of Dr Craig Cook as Chief Executive Officer, effective from 1 June 2018.
1) Total gross revenue represents collaboration income from continuing operations plus grant revenue.
2) Statutory Revenue represents total gross revenue, excluding grant revenue.
Commenting on the Full Year 2018 Results, Midatech's Chief Executive Officer, Dr Craig Cook, said: "2018 was a year of strategic refocusing of the business, with Midatech becoming a pure-play R&D company following the divestment of our US commercial operation in November, a major milestone for the Group.
"We believe the Company has entered a new chapter in its growth as a streamlined R&D focused business with in-house manufacturing. We are now delivering on clinical milestones, with strong clinical data, and a compelling pipeline for our proprietary drug delivery platforms, all of which are now into the clinic.
"We look forward to an exciting period ahead, creating value for all stakeholders."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).