LONDON (Alliance News) - Midatech Pharma PLC on Monday posted a widened pretax loss for its first half, hit by costs related to acquisitions and its listing at the end of 2014, as well as by investment in its development pipeline.
For the half year to end-June the company posted a pretax loss of GBP5.2 million, widened from a pretax loss of GBP3.2 million a year before, as a result of exceptional listing and acquisition expenses, and an increase in research and development costs. Revenue rose to GBP324,000 from GBP36,000.
The increase in research and development costs were a result of the company preparing for a phase IIa clinical trial for the MidaFormTM transbuccal insulin programme, scheduled for the second half of 2015, and continued progress in its other development programmes.
In June the company agreed to acquire acquire NASDAQ listed oncology supportive care pharmaceutical company DARA BiosSciences Inc for up to USD29.7 million. It said it expects this acquisition to close in the fourth quarter of 2015.
"2015 has shown a strong start to Midatech's next stage of corporate development. With the proposed acquisition of DARA BioSciences, three new collaborations and further progress with our own pipeline, we continue to build upon our strategy with the aim of creating a world-class specialty pharmaceutical company," said Chief Executive Officer Jim Philips in a statement.
Shares in Midatech Pharma were down 0.9% at 265.00 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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