Midatech Pharma's revenues increases due to US sales

Midatech Pharma’s half-year revenues increased significantly, with management sounding an optimistic note regarding the potential of the company´s research and development programmes.

For the six months ended 30 June, revenue increased significantly to £3.8m from £320,000 in the same period last year.

At £3.19m US product sales made up the largest part of the oncology outfit´s sales. A further £260,000 came from collaboration revenue and sales made by the UK business. The £350,000 balance of revenue came from grant income received under its two European grant-funded programmes.

However, research and development costs increased 13% to £2.05m and administrative expenses jumped 81% to £6.82m due to the acquisition of oncology support care business Midatech Pharma US, previously DARA Biosciences, in December 2015.

Net cash outflow used in operations rose by 55% to £8.25m as a result of the above acquisition driving the cash balance as of 30 June to £7.23m from £24.3m one year ago. Loss per share increased by 39% to 25p.

Chief executive Dr Jim Philips, said: "Midatech has made good performance in the first half of 2016 and our commercial business is well placed to deliver continued revenue growth in the second half of 2016.

“We continue to carefully invest in our platform technologies and candidate pipeline and the remainder of 2016 with 2017 are set to deliver results from a variety of our exciting research and development programmes. Notwithstanding the challenging recent market conditions globally, we continue to look at opportunities to build value for shareholders and look to the future with optimism."

Shares in Mediatech Pharma were down 6.87% to 11.50p at 1156 BST.