LONDON (Alliance News) - Panmure Gordon & Co reiterates its Buy rating on Midatech Pharma PLC following its proposed acquisition of DARA BioSciences Inc, which analyst Savvas Neophytou views as "an important step forward in the growth profile of the business".
The acquisition is in line with Midatech's strategic growth plans, says Neophytou, with a strong strategic fit between the two companies. The buy augments Midatech's franchise in oncology with immediate access to a revenue generating product portfolio in cancer supportive care.
This is also gives Meditech an established commercial platform in the US, and overall the deal "effectively accelerates the transition of Midatech towards a leading specialty pharmaceutical company", says Neophytou.
Neophytou says Panmure will update its forecasts and valuations on Midatech in due course.
Panmure has a price target of 420 pence for Midatech. Shares in the company are trading up 2.8% at 299.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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