London Stock Exchange is pleased to welcome Midatech Pharma plc to AIM

London Stock Exchange is pleased to welcome Midatech Pharma plc (“Midatech”, the “Group” or the “Company”), to AIM. Midatech was admitted to trading on AIM on 8 December 2014 (symbol MTPH).

Midatech is a nanomedicine company based in Oxford focused on the development and commercialisation of multiple therapeutic products to enhance the delivery of medicines in major diseases with high unmet medical needs. These diseases include diabetes, certain cancers such as liver, ovarian and brain and neurological/ophthalmologic conditions, most of which have multi-million or multi-billion dollar markets. The Group’s two platform technologies are designed to enable targeted delivery and sustained release of existing therapeutic drugs to the ‘right place’ at the ‘right time’.

The funds raised from the Company’s placing on admission to AIM will enable Midatech to fund the Company towards profitability, and specifically to fund the development of clinical trials for candidate products; fund the Group’s own pre-clinical studies and technology development; and enable preparation for commercialisation of the Group’s partnered and non-partnered products. Additionally, the Company has acquired Q Chip Limited (“Q Chip”) and its subsidiaries on IPO. Founded in 2003 with the acquisition of core intellectual property around micro-fluidics from Cardiff University, Q Chip develops a complementary technology and products that allow sustained release of substances over extended periods of time.

The Group’s core technology platform is based on a patented form of gold nanoparticles (GNPs) that are developed to improve key parameters of existing and new drugs, target individual cell types with specific targeting agents and deliver a therapeutic payload in the cell, while ensuring this can be achieved safely. The Group’s secondary platform of sustained release technology (through its acquisition of Q Chip) involves the 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 three months and potentially longer.

The Group is collaborating with a number of universities, speciality and major pharmaceutical companies to develop its platform technologies into a broad number of products. Furthermore, the Group has a joint venture with MonoSol Rx LLC to develop and commercialise transbuccal delivery of insulin for diabetic patients, using insulin conjugated GNPs formulated into dissolvable, oral film strips. The Group has developed a strong intellectual property base and, following the acquisition of Q Chip, will have a wide IP portfolio of 53 granted patents, 96 applications in process, and 30 patent families covering a range of technologies.

Midatech has raised £32.0 million (before expenses) by way of a placing of 11,985,019 new ordinary shares at a price of 267 pence per share. On Admission, Midatech will have 27,794,260 ordinary shares in issue. Based on the placing price, the market capitalisation of Midatech on admission will be approximately £74.2 million. The Company is being advised by Panmure Gordon (UK) Limited, which is acting as Financial Adviser, Nominated Adviser and Broker.

Jim Phillips, CEO of Midatech, said:

“Midatech is at an exciting stage in its evolution: progressing a portfolio of product programmes towards commercialisation. These products offer multiple revenue opportunities, first through the licensing of partner-supported products and then our own product sales, as Midatech develops into a specialty pharma company with multiple product launches. The acquisition of Q Chip brings further value to our offering, adding a complementary technology platform and a range of additional advanced product programmes that have the potential to deliver accelerated revenue streams.

“The proceeds from the IPO will enable Midatech to rapidly move ahead, executing on the strategic plan to become a profitable fast growth company, via moving our own products forward, whilst continuing to partner our core technologies for revenue.”