Midatech hails strong 2015 as cancer drug programme accelerates

Oncology drug specialist Midatech Pharma said growth last year was more than it expected and revealed a recent acceleration of its brain cancer programmes through its selection for a paediatric compassionate use programme in the UK.

Midatech's proprietary treatment has been chosen by Bristol Royal Infirmary oncologists to be used in a rare paediatric brain tumour programme, which brings forward the in-human trials of the company's cancer products very significantly.

If successful, Midatech said the Bristol programme could result in a fast-tracked product to market, where there is currently an unmet medical need.

On 2015's performance, the company, which floated on AIM just over a year ago, said its first full calendar year on the market would produce revenue "slightly ahead of expectations", thanks in part to the recent acquisitions of DARA BioSciences and Zuplenz, which have provided the group's US commercial arm with four marketed oncology products.

Chief executive Jim Phillips said that following the brace of acquisitions and other licensing and supply agreements, 2015 saw the company achieve the strategic objectives set out at the time of the IPO, "accelerating the Company towards sustainable profitability".

"Our internal pipeline also continues to develop well, providing various long-term opportunities."

"With an established commercial operation in the US, we expect to deliver strong revenue growth in 2016 at the higher end of current market expectations as we reinforce our position as an oncology-focussed specialty pharmaceutical company."

House broker Panmure Gordon nudged its full year estimates to a loss before tax of £10.6m on sales of £1.3m and for 2016 losses of £13.4m on £9.1m revenues.

"We consider this as a strong validation of Midatech's platform and, if successful, could result in a fast-tracked product to market where there is currently an unmet clinical need. In light of the confident trading update, the accelerated in-human application of the company's technology in oncology and the, in our view, unjustified current share-price levels, we regard Midatech as a compelling investment."

Shares in Midatech were up 13% to 200p by mid afternoon on Wednesday.