News that drug delivery specialist Midatech Pharma (MTPH:AIM) is to receive an upfront payment from a new licencing agreement sends its shares 3.5% higher to 180p.
The undisclosed payment is linked to an agreement to let biotech Emergex Vaccines use its gold nanoparticle technology to develop new treatments. The terms of the deal also include milestone and royalty payments linked to any successful vaccine developed. The terms of such payments have not been disclosed.
Midatech specialises in therapeutic areas, such as oncology, but this is the first time its nanoparticles will be used to develop a vaccine to fight infectious diseases.
Panmure Gordon analyst Mike Mitchell says: ‘Today’s announcement provides a reminder, in our view, of the breadth of Midatech’s technology platform and the capabilities of the company’s core expertise in creating new commercial opportunities.’
Under the terms of the agreement, Midatech will provide manufacturing services to Emergex for materials to be used in clinical trials.
Midatech also confirmed that revenues for 2015 will meet consensus expectations of £1.2 million.
