Midatech Pharma plc

Stephen Stamp said H1 2021 revenues had a “nice bump” versus H1 2020, driven by collaboration partnership work on Q-Sphera, but he did not state the exact revenue figure on the call. He said R&D was “just about £2 million,” admin costs were £1.6 million, and net loss was just over £3 million, or about £0.5 million per month. Cash on the balance sheet at half-year was £4.5 million, then the company raised another £9 million in July, taking current cash to “more closer to £12 million” and extending runway into Q1 2023. No specific EPS or gross margin figures were given, and management did not provide formal next-quarter or full-year financial guidance beyond the cash runway comment.

Stamp’s strategic message was that Midatech has tightened its cost base, cleaned up the balance sheet, and now has room to push a broader pipeline. He emphasized prioritizing GBM for MTX110 because the market is much larger than DIPG and because the earlier survival data, while not statistically significant, was encouraging. He also framed the protein/monoclonal antibody result as a major expansion opportunity for Q-Sphera, not just a one-off technical win.

Stamp, speaking as CEO and CFO, focused on the financial reset after Spain was closed: costs were “pretty much half” versus last year because the Spanish operating and shutdown costs are gone. He said all Spanish loans have been repaid, the only new balance-sheet item was the Cardiff headquarters and lab lease capitalized under IFRS-16, and cash was £4.5 million at half-year before the £9 million July raise. He repeatedly stressed conservatism, noting the Q1 2023 runway assumes a number of in-house programs and “zero” license fees from third parties.

On Q-Sphera and large molecules, management said the main technical hurdle overcome was encapsulating protein without denaturation; the next challenge is improving drug loading, and the Cardiff team has already increased it threefold. They also said the remaining key issue is developing an in vitro dissolution assay, since the medium can denature the protein during testing, while injectability is not seen as a current problem. On the terminated Dr. Reddy partnership, Stamp said the molecule was challenging from the start and likely not well suited to PLGA microsphere formulation, so the failure was molecule-specific rather than a broader limitation of Q-Sphera. He also said Midatech is actively seeking partners and licensees, including for brexpiprazole, while trying to maintain a balance between internal programs and partnered work.