Midatech Pharma Plc (LON:MTPH, NASDAQ:MTP) is set to further boost its coffers with a new £6mln loan facility with Silicon Valley Bank to accelerate its cancer-focused product pipeline.
The firm will receive an initial tranche of £2 million, available on signing, and which the firm expects to receive within the next 10 working days.
A further two tranches of £2 million each will become available on achievement of certain clinical development milestones.
All the loans will be repayable by June 2020, the group said.
Last October the firm brought in £16mln via an oversubscribed placing to fund expansion plans
“Midatech is rapidly evolving as a specialty pharma company and, together with revenues from our US commercial operations, we now have the financial flexibility to support our future growth,” it had told investors.
Midatech is all about delivery. Its two platforms – carbohydrate-coated gold nano-particles and its sustained release system – are about getting medicines to the right place in the right quantities at the right time.
The company’s gold nano-particles, or GNPs for short, promise a revolution in targeted therapies for cancer
The strategy is to internally develop oncology products and collaborate with partners in other areas, and to drive growth both organically and through strategic acquisitions.
Last month it said the business has the potential to generate double digit top-line growth this year as revenues increased significantly in 2016. Total reported sales were £9mln, up from just £1.4mln in 2015.
Story by ProactiveInvestors