Midatech Pharma

LN: MTPH

Market Cap£10m

Last Close 9.75p

Midatech is a drug-delivery specialist focused on re-engineering therapeutics through its technology platforms (MidaSolve, local drug-delivery; QSphera, sustained-release; MidaCore, targeted delivery) to improve their bioavailability and delivery.

Investment summary

Midatech’s FY21 results continued to reflect financial prudence (following the March 2020 business realignment), with normalised operating loss improving to £7m (£10.7m in FY20) despite a much broader R&D pipeline. Clinical asset MTX110 (MidaSolve platform), already in Phase I for orphan DIPG and medulloblastoma brain cancers, is expected to commence a Phase I study in mid-2022 for recurrent glioblastoma, an opportunity more than 30 times the size of the other two combined. We believe visibility from the Q-Sphera pipeline will improve investor confidence. With the current cash balance (£10.1m at the end of FY21) only sufficient to fund operations to early 2023, we anticipate that potential partnerships and/or licensing deals will de-risk the near-term outlook.

Y/E Dec	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (p)	P/E (x)	P/CF (x)
2020A	0.3	(9.5)	(11.1)	(22.92)	N/A	N/A
2021A	0.6	(6.6)	(6.1)	(6.78)	N/A	N/A
2022E	N/A	N/A	N/A	N/A	N/A	N/A
2023E	N/A	N/A	N/A	N/A	N/A	N/A

Industry outlook

The proprietary platforms develop products that address debilitating conditions with significant clinical needs. Applications are expected to be out-licensed for development following proof of concept.

Last updated on 19/05/2022