potential30 Mar 2019 09:29
Midatech will manufacture and supply the licensed products, earning a manufacturing margin “in the low double-digit percentage range”, although the margin will be a bit less for MTX110 – a treatment for a rare type of brain tumour found in children – as Novartis will take a slice for the use of its panbinostat.
On top of that, the AIM firm is also entitled to receive various regulatory and sales-based milestone payments for each product which could run into the tens of millions, although these are not expected for a couple of years yet.
“The board believes that this partnership with the licensees has the potential to accelerate the development of the company's assets in the CMS Territory with a high quality, expert partner with demonstrable development and significant sales expertise, whilst permitting the company to retain its focus on its main target markets in the US and the EU and potentially to service the rest of the world.”