Currency in US$
Last close As at 08/06/2023
US$0.95
▲ −0.25 (−20.83%)
Market capitalisation
US$2m
Research: Healthcare
Midatech has announced a new preclinical programme, MTD217, targeting leptomeningeal disease, a secondary metastatic cancer of the central nervous system (CNS), with currently poor prognosis (average survival of 3–6 months). The drug will be developed using the MidaSolve platform (dissolves otherwise insoluble drugs that can then be injected directly to the site of the cancer to maximise efficacy and reduce off-target toxicity). Midatech is working on initiating preclinical studies (in collaboration with several large academic centres) with the aim to generate proof-of-concept data to support clinical progression. We highlight that in the recently concluded AGM, Midatech shareholders approved all key resolutions, including 1:20 share consolidation, change of trading name to Biodexa Pharmaceuticals and stock delisting from AIM. Midatech raised £5m in gross proceeds through a private placement, which we expect will be partially used to accelerate preclinical studies for MTD217. Lead asset MTX110 is in Phase I clinical studies in recurrent glioblastoma.
Midatech Pharma |
Development pipeline expands with MTD217 |
Pipeline update |
Pharma and biotech |
28 March 2023 |
Share price performance Business description
Analysts
Midatech Pharma is a research client of Edison Investment Research Limited |
Midatech has announced a new preclinical programme, MTD217, targeting leptomeningeal disease, a secondary metastatic cancer of the central nervous system (CNS), with currently poor prognosis (average survival of 3–6 months). The drug will be developed using the MidaSolve platform (dissolves otherwise insoluble drugs that can then be injected directly to the site of the cancer to maximise efficacy and reduce off-target toxicity). Midatech is working on initiating preclinical studies (in collaboration with several large academic centres) with the aim to generate proof-of-concept data to support clinical progression. We highlight that in the recently concluded AGM, Midatech shareholders approved all key resolutions, including 1:20 share consolidation, change of trading name to Biodexa Pharmaceuticals and stock delisting from AIM. Midatech raised £5m in gross proceeds through a private placement, which we expect will be partially used to accelerate preclinical studies for MTD217. Lead asset MTX110 is in Phase I clinical studies in recurrent glioblastoma.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/18 |
1.94 |
(11.8) |
(339.0) |
0.0 |
N/A |
N/A |
12/19 |
0.67 |
(10.9) |
(50.0) |
0.0 |
N/A |
N/A |
12/20 |
0.34 |
(11.1) |
(22.9) |
0.0 |
N/A |
N/A |
12/21 |
0.58 |
(6.1) |
(6.8) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised.
The new clinical programme, MTD217, will be designed to simultaneously target key metabolic pathways (glycolysis/Warburg effect) and the oxidative phosphorylation (OXPHOS) pathway, used by cancer cells to generate energy for growth and proliferation. According to Midatech, cancer cells, under induced stress, switch from glycolysis to the OXPHOS pathway for energy so inhibition of both should support broader utility and efficacy. While small molecule drugs can be used to downregulate these pathways, usage has been undermined by off-target toxicity from systemic administration of these drugs. By solubilising these drugs using the MidaSolve technology, and directly delivering the therapeutics to the site of the cancer cells (simultaneously or sequentially), Midatech is proposing a more effective (higher dose concentrations) and safer (limiting off-target toxicity) alternative to available treatments, for both primary and metastatic cancers.
The initial indication targeted would be leptomeningeal disease, a secondary CNS cancer, where metastatic cancer cells (primarily melanoma, lung and breast cancers) migrate to and invade the cerebrospinal fluid. Despite approved treatments, prognosis remains poor with average survival of 3–6 months.
As a reminder, Midatech’s shareholders recently approved all resolutions proposed at the 24 March AGM, following which the company undertook a 1:20 share consolidation, effective 27 March (8,667,337 shares outstanding following consolidation). The share/ADS ratio will change to 1:5 from 1:25. Midatech will delist from AIM and continue trading on Nasdaq under a new name, Biodexa Pharmaceuticals (BDRX).
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Research: TMT
While commercial delays have affected Vection Technologies’ H123 financial performance, lead indicators are encouraging, underpinning management’s reiterated guidance of FY23 IntegratedXR revenue growth of 45% y-o-y using the midpoint of its A$24–26m range. According to the company, the majority of these commercial delays have now been resolved, supporting the 50% q o q uplift in total contract value (TCV) in Q3 (to 22 March). Also in Q3, the company started several pilot projects, most notably a A$1m pilot in the defence sector that could extend to a A$30m tender, where a portion of this could be delivered before year-end if it wins the tender.
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