Biodexa Pharmaceuticals Plc

Midatech reported a “nice bump” in revenues in the first half of 2021 versus the first half of 2020, driven by collaboration partnership work on Q-Sphera programs, but did not give a revenue figure. R&D was “just about £2 million,” admin costs were £1.6 million, and net loss was “just over £3 million pounds,” which management equated to about £0.5 million per month. Cash on the balance sheet at half-year was £4.5 million, and after a £9 million raise in July, current cash was said to be closer to £12 million, with runway into the first quarter of 2023. Guidance/commentary: the company said this cash runway assumes a number of in-house programs and assumes zero license fees from third parties. Near-term updates expected include data on 214 and 216 in the next few weeks, a possible announcement on 213 in the next couple of three weeks, and Phase I recruiting for GBM in the next few months, with DIPG recruiting to begin in the not-too-distant future.

Stephen Stamp’s message was that the company made tangible technical and operational progress in the half, while staying disciplined on cash. He emphasized a pivot toward GBM in MTX110 because it offers a much larger patient and market opportunity than DIPG, and said the company is using its catheter-and-pump approach to bypass the blood-brain barrier. He also framed the protein/monoclonal antibody work as a major breakthrough for Q-Sphera, saying the Cardiff team had increased drug loading threefold.

Stamp’s financial commentary focused on the cleaner cost base and stronger balance sheet. He said the first half no longer included Spain closure costs or Spanish operating costs, which helped cut costs sharply; R&D was about £2 million, admin £1.6 million, and loss just over £3 million. He also noted the balance sheet had been cleaned up, Spanish loans repaid, and only a new Cardiff lease added under IFRS-16, while cash increased from £4.5 million at half-year to about £12 million after the £9 million July raise, giving runway into Q1 2023. He stressed the runway assumes zero license income and includes a number of internal programs.

In Q&A, management was pressed on the biggest technical hurdles for Q-Sphera proteins and monoclonal antibodies. Stamp said the main hurdle already overcome was encapsulating protein without denaturing it, that drug loading had improved threefold, and that the remaining major challenge is building a dissolution assay because the medium itself denatures the protein; injectability was described as not a current concern. He also addressed the terminated Dr. Reddy partnership, saying the molecule itself was inherently challenging and likely not well suited to PLGA microsphere formulation. On strategy, he said Midatech wants a balanced portfolio: some internal programs it controls, plus partnered programs that can fund development but reduce flexibility, and he said the team is actively meeting institutions, doing roadshows, and using Edison research to raise visibility despite the weak share price.