Oxford, UK-based Midatech reported a net loss of £4.6m ($7.4m) for its first six months 2015, attributed to R&D and administrative expenses, though revenues grew 800% tear-on-year to £324,000 ($500,000).
The company uses its GNP technology for both its own pipeline of products and for partner projects, and according to N+1 Singer analyst Jens Lindqvist, the platform “holds significant promise.”
The nanoparticles comprise a core of gold metal atoms to which an organic layer of carbohydrates or glycans, such as glucose, are attached via gold-sulphur bonds. This layer stabilises the metallic core, making the particle water-soluble and biocompatible. These are then used to deliver small molecule agents or peptides, attached to the GMP with linkers.
“We are particularly excited about the company’s gold nanoparticle platform and its applicability across several therapeutic areas,” Lindqvist said in a note.
So far one GNP-based programme has entered clinical trials: Midaform Insulin, being developed in a joint venture with Monosol. The work is performed at Midatechs GMP manufacturing facility in Bilbao, Spain.
While the firm said it expects revenues to continue to increase through the leverage of its technology, it is also pursuing an M&A strategy to grow further.
In June, Midatech announced it was acquiring Dara BioSciences, a Raleigh, North Carolina-based oncology drug company, and the deal is set to be completed in the next few weeks.
“The deal represents a major step in the on-going transformation of Midatech into a profitable speciality pharma company,” Lindqvist said.
Last year the company bought Q Chip, a sustained release technology firm intended to be complementary to the GNP platform.
“The Group is advancing well on the execution path of our three elements of strategy,” CEO Jim Phillips said in a statement. “The first strand, partnerships, continues to expand and attract new parties, the second, own products, continues to be developed with promising results to date, and the third, acquisitions, is on track as we look to deliver a second acquisition with Dara.”