Midatech Pharma PLC (AIM: MTPH.L; Nasdaq: MTP), the R&D biotechnology company focused on delivering innovative oncology and rare disease products to patients, is pleased to announce that it has received funding of €6.6m (the "Loan") under the Spanish Government Reindustrialisation ("Reindus") programme to support the Company's manufacturing facility in Bilbao, Spain. This brings the total public financing available for this project to up to €8.5m, including previous grant and loan amounts recently approved by the Basque regional government1.
Further to the announcement of 29 March 2019 (the "Loan Announcement"), the Loan is intended to fund activities to scale-up the manufacturing capability of Midatech's key MTD201 Q-Octreotide development product. The total manufacturing cost of the project is currently estimated at approximately €16m subject to finalisation of the manufacturing strategy as detailed in the Company's 2018 results. Midatech has provided a €2.9m guarantee (€2.6m relating to the principal loan amount as previously reported, plus a further €300k in respect of future interest) in the form of a cash bond in accordance with the terms of the Loan. Other terms of the Loan are as set out in the Loan Announcement. The Company continues to explore additional potential funding avenues for the remainder of the scale-up costs and for additional working capital.
MTD201 is a treatment for acromegaly and neuroendocrine (NET) tumours such as carcinoid cancer and is based on the Company's novel polymer microsphere technology, Q-Sphera™ for sustained release delivery. The leading product currently in this US$2.5 billion market is Novartis' Sandostatin® LAR® ("SLAR").
As announced on 13 June 2019, the next phase of clinical development for MTD201 as a differentiated product is scheduled to commence in H2 2019, to support a first indication in acromegaly, comprising a short Phase I study in healthy volunteers, confirming the use of the sub-cutaneous administration route, followed thereafter by the pivotal trial in patients.
1 of which €1.5 million is subject to matched funding.