Big Picture – A Deep Dive Examination of Midatech Pharma PLC
Midatech Pharma PLC Snapshot
Midatech’s strategy is to expand its US commercial presence as well as develop its platform technologies into multiple products in order to achieve multiple potential revenue opportunities. Its business model has three key components:
Development and commercialisation of its own products, particularly for rare cancers
Development and commercialisation of partner-supported and licensed products, principally in endocrine disorders such as diabetes, and immunotherapy for autoimmune diseases
Acquisitions of later stage, strategic and complementary opportunities (products or technologies) that accelerate revenue, and are value accretive
Its commercialisation strategy is to build an enduring, profitable and commercially focused enterprise with revenues generated as follows:
Research and development collaborations
Partner licensing and royalty deals
Commercialisation of own products in the specialist orphan sector
In oncology, Midatech has the opportunity to leverage its own commercial capabilities in the US and roll out similar infrastructure in Europe around the market entry of its orphan oncology program products.
Versatile technology platforms with broad applications across multiple therapeutic areas.
Central to Midatech’s business are two platform technologies that are designed to enable the targeted delivery (‘right place’) and controlled release (‘right time’) of existing drugs. These technologies have broad applications in multiple therapeutic areas and will allow Midatech to develop multiple revenue streams.
Midatech’s primary platform technology is based on carbohydrate-coated gold nanoparticle (GNP) drug conjugates.
Midatech’s core technology platform is based on a patented form of gold nanoparticles (GNPs), which has been developed to improve key parameters when bound to existing and new drugs. GNPs aim to target individual cell types with specific targeting agents and deliver a therapeutic payload into the tumour cell, and reduce the current side-effect profile associated with chemotherapy. GNP technology is the latest generation of nanomedicine, with demonstrated safety in the clinic to date.
The key advantages of Midatech’s GNP platform technology are:
- Solubility: Can bind and transport non-soluble and lipid soluble therapeutic compounds to sites of disease
- Releasability: GNP-drug conjugates can release the active compound inside the cell
- Mobility: Small size (3.5 nanometer diameter) means GNP-drug conjugates may cross membranes (including the blood brain barrier), move between cells and through cells to reach diseased cells
- Targetability: Multiple binding sites mean several therapeutics and targeting agents may be attached to a single nanoparticle
- Stability: Peptides may be stabilised by GNP drug conjugates as they have less freedom to degrade when bound
- Excretability: Due to their small size, GNP drug conjugates are believed to exit cells and get eliminated via the kidneys and liver
- Compatibility: GNPs are inert and biocompatible, and are not expected to trigger an immune response
- Scalability: Through its own GMP manufacturing facility, Midatech can control the supply and develop quality material for clinical trials and commercialisation
For more information, please click here
Midatech’s sustained release technology platform (“Q-Sphera”) may enable active drug compounds to be manufactured with consistent precision and released into the body in a highly controlled manner over a prolonged period of time: potentially from a few days to up to six months.
The potential advantages of the sustained release drug delivery system over conventional dosage forms include:
- Improved patient compliance: due to less frequent drug administration
- Reduction of fluctuation in steady-state drug levels
- Maximum use of the drug
- Increased safety margin
- Reduction in healthcare costs through improved therapy
Midatech’s Q-Sphera polymer microsphere platform is being developed to enable sustained release delivery solutions for peptide and small-molecule therapeutics through precise definition of the properties of polymer microparticles into which compounds can be incorporated. Microspheres are small, spherical particles that can be utilised as a time release drug capsule.
Midatech's Q-Sphera micro-fluidic technology allows the precise formulation and characterisation of the release of drugs over a predefined period from a few days up to three months. The manufacturing technology allows particles to be engineered with high precision and consistent size, alongside other key characteristics.
Q-Sphera can use a wide range of biomaterials to encapsulate drug candidates into micron sized particles (of diameter ~25μm). Long-acting treatment is achieved using formulations of biodegradable polymers (including polylactides) to control the release of API over a period of 3-6 months following a single injection. Monodisperse microspheres may be readily injected via minimally-invasive needles as fine as 30G. In formulating small molecules, biopharmaceuticals and PEGylated species, Midatech focuses on developing products that provide high drug loading, with minimal initial burst release, which is essential to the development of safe and effective therapies. This requires precise control over particle size, morphology and drug kinetics. This Midatech microsphere manufacturing enables emulsion-free synthesis with both product monodispersity and processing efficiency.
Markets of focus for such preparations include oncology, immunology, endocrinology, neuroscience, and ophthalmology. Sustained release programs are underway in:
Oncology and Endocrinology/ Q-Octreotide—a lead program in acromegaly, an endocrine disorder in which the body produces too much growth hormone, and a second programme in carcinoid syndrome, an oncologic disorder of neuro-endocrine tumours; and
Ophthalmology/ Opsisporin—in uveitis (inflammation of the eye).
Midatech operates an in-house nanoparticle manufacturing facility, which is believed to be the first licensed API cGMP facility of its kind in Europe. This state-of-the-art facility based in Bilbao, Spain, aids in the rapid execution of projects, control of manufacturing quality and supply of all aspects of Midatech’s GNP platform, thus avoiding reliance on external manufacturing partners.
The site has capacity for manufacturing sufficient materials for clinical trials and is fully licensed by the Spanish Medicines Agency for European compliance. The facility underwent a €800,000 upgrade in September 2014 to enable the production of sterile material for use in human clinical trials and initial phase manufacturing of licensed product.
Also in 2014, an international consortium led by Midatech was selected to receive a €7.9 million Horizon 2020 European Union “NanoFacturing” grant to fund the manufacturing scale-up of clinical-grade therapeutics based on its GNP drug conjugate technology and other nanopharmaceuticals, for use in clinical trials and in preparation for commercial production and supply. Midatech is also able to leverage this facility to manufacture for other non-competing nanomedicine businesses, representing additional revenue - generating opportunities. The Horizon 2020 grant submission was supported by Eli Lilly.
Further investment in commercial scale up of production is on-going at Midatech Bilbao facility. This will enable Midatech to capture more of the integrated value chain and manufacture in-house Q-Octreotide and other projects.
Midatech's two platform technologies are designed to enable targeted delivery and sustained release respectively of existing therapeutic drugs to the ‘right place’ at the ‘right time’. The first of these platforms is a Gold Nanoparticle Technology Platform (GNPs) that are developed to improve key parameters of existing and new drugs, target individual cell types with specific targeting agents and deliver a payload in the cell, while ensuring this can be achieved safely. GNP technology represents amongst the latest generation of nanomedicine and the fastest growing sector within the nanomedicine market. The second of these platforms is a Microsphere Sustained Release Technology Platform (SR) that achieves consistent and precise encapsulation of active drug compounds within polymer microspheres. The microspheres are designed to release the active drug compound into the body in a highly controlled manner over a prolonged period of time, from a number of weeks to six months and potentially longer. Sustained release technology provides the added capacity to sustain the optimal range of drug concentrations, which has wide medical applicability with diverse pharmaceutically active molecules.
For information on Oncology, please click here
For information on Autoimmune Diseases, please click here
To view the pipeline of products, please click here
For more information on Q-Octreotide, please click here
For more information on Opsisporin, please click here
For more information on HCC, please click here
For more information on Glioblastoma (GBM), please click here
For more information on Diabetes Vaccine, please click here
|Name||Number of shares||%|
|Woodford Investment Management||12,247,629||20.1|
|Legal & General Group||
|Midatech Pharma Share Incentive Plan||105,068||n/a|
Midatech Pharma Plc
65 Innovation Drive
Oxfordshire OX14 4RQ
T: +44 (0)1235 888300
E: [email protected]
Nominated Adviser and Broker
Panmure Gordon (UK) Limited
One New Change
+44 (0)20 7886 2500
Financial Public Relations & Investor Relations (UK)
Consilium Strategic Communications (City, trade, institutions and financial media enquiries)
London EC2R 7HG
+44 (0)20 3709 5700
Cassiopeia Services (Private investors and general media enquiries)
55 Gower Street
Investor Relations (US)
Westwicke Partners, Boston, US
132 Chief Justice Cushing Highway
Cohasset, MA 02025 | (339) 970-2843Solicitors
Brown Rudnick LLP
8 Clifford Street
London W1S 2LQ
Reporting Accountants and Auditors
55 Baker Street
London W1U 7EU
Neville Registrars Limited
18 Laurel Lane
Halesowen B63 3DA