TIDMMTPH
RNS Number : 1581R
Midatech Pharma PLC
26 February 2019
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26 February 2019
Midatech Pharma PLC
("Midatech" or the "Company")
Finalisation of Strategic Investment and Licence Agreement
Midatech Pharma (AIM: MTPH; Nasdaq: MTP), the R&D company
focused on delivering innovative oncology and rare disease products
to patients, is pleased to confirm that further to the announcement
made by the Company on 29 January 2019 and following the approval
at yesterday's general meeting by shareholders of the strategic
investment by China Medical Systems Holdings Limited group ("CMS")
and A&B (HK), the licence agreement entered into by the Company
and CMS is now formally in force.
The strategic investment by CMS and A&B (HK), comprised an
GBP8m subscription in Midatech, for in aggregate 207,792,206
Ordinary Shares at a price of 3.85 pence per share. The
Subscription Shares were admitted to trading on AIM today alongside
the Placing Shares and Open Offer Shares.
From a Midatech product perspective, as stipulated in the
licence agreement, CMS has rights to develop and commercialize the
Company's pipeline of products (including any products which are in
or enter into pre-clinical or clinical development within a period
of three years) in Greater China and certain South East Asian
countries excluding Japan and South Korea (the "CMS Territory") in
perpetuity. Subject to certain milestones being achieved, the
Company will be entitled to receive regulatory and sales-based
milestone payments as well as royalty payments.
From a Midatech technology platform perspective the licence
agreement permits CMS to identify its own potential product
opportunities and, if agreed by Midatech, CMS will be entitled to
carry out such development in China with initial assistance from
Midatech which will be funded by CMS through a technology transfer
fee payable to the Company by CMS. If such products obtain
approval, CMS will retain the rights specific to such developed
products and will license the Company to commercialize them outside
the CMS Territory in the rest of the world.
China Medical System Holdings Limited (HKG: 0867), is a
well-established, innovation-driven specialty pharma with a focus
on sales and marketing in China. CMS has established the
diversified product introduction strategies to constantly provide
competitive products and services to fulfil the unmet medical needs
of the China market, as well as to sustain the momentum for its
future development. CMS has a fully-covered nationwide promotional
network, mainly focusing on academic promotion. As at 30 June 2018,
CMS covered over 48,000 hospitals and medical institutions across
China.
The collaboration provides Midatech with a key strategic
partnership in China and South East Asia, access to the significant
Chinese market, substantial investment and funds for Midatech's
current key programs, as well as additional CMS funded
opportunities for the Company's technology platforms Q-Sphera,
MidaSolve, and MidaCore.
Dr Craig Cook, Chief Executive Office of Midatech Pharma, said:
"We are delighted to finalise the licence agreement with China
Medical Systems, a leading Hong Kong based Chinese pharmaceutical
company. This is a key collaboration for Midatech that provides a
strong endorsement of our technologies and pipeline whilst
establishing a solid foundation for a successful and ambitious
long-term partnership. The agreement will enable development of
current and new products and extend our reach to the important
markets of China and South East Asia. We look forward to developing
this collaboration with CMS."
Mr Lam Kong, Chairman and Chief Executive Officer of CMS, said:
"We are excited to work with Midatech and the strategic investment
and licence agreement is testament to our confidence in the value
of the Midatech product pipeline and technologies, and our
commitment to the partnership. We look forward to a fruitful
relationship with Midatech as we contribute to the development of
its innovative pipeline of products as we incorporate them into the
extensive CMS portfolio."
The capitalised terms not otherwise defined in the text of this
announcement are as set out in the circular to shareholders dated 5
February 2019.
- ENDS -
For further information, please contact:
Midatech Pharma PLC
Craig Cook, Chief Executive Officer
01235 888300
Panmure Gordon (UK) Limited (NOMAD)
Freddy Crossley, Emma Earl (Corporate Finance)
020 7886 2500
James Stearns (Corporate Broking)
Stifel Nicolaus Europe Limited (Joint Bookrunner)
Jonathan Senior, Ben Maddison 0207 710 7600
Consilium Strategic Communications
Mary-Jane Elliott / Nicholas Brown / Angela Gray
0203 709 5700
Notes for Editors
About Midatech Pharma PLC
Midatech Pharma (LSE AIM: MTPH; NASDAQ: MTP) is an R&D
company focused on delivering innovative oncology and rare disease
products to patients. The Company is developing a range of improved
chemo-therapeutics or new immuno-therapeutics, using its
three-proprietary platform drug delivery technologies, all of which
are in the clinic, specifically:
1. Q-Sphera(TM) platform: our disruptive polymer microsphere
technology used for sustained release at the microscale to prolong
and control the release of therapeutics over an extended period of
time from weeks to months.
2. MidaCore(TM) platform: our leading-edge gold nanoparticle
technology used for targeting sites of disease at the nanoscale
i.e. chemotherapy - improved and targeted delivery of existing
chemotherapeutic agents to tumour sites, as well as ii.
immunotherapy - enhanced uptake of new immuno-moieties by immune
cells that can then mount an immune attack against cancer
cells.
3. MidaSolve platform: our innovative nanosaccharide technology
used to dissolve drugs at the nanoscale so that they can be
administered in liquid form directly and locally into tumours.
Each of our three technologies are thus focussed on improved
bio-delivery and bio-distribution of medicines or agents to areas
of the body where they are needed and can exert their actions in an
effective, safe and precise manner.
Midatech is headquartered in Oxfordshire, with an R&D
facility in Cardiff and a manufacturing operation in Bilbao, Spain.
For more information please visit www.midatechpharma.com.
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END
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