Midatech Pharma, a spin-out of Cardiff University developing nanomedicines, has floated on London’s AIM, raising £32m ($50m) through its IPO.
Trading under the ticker symbol “MTPH”, the company placed 11,985,019 ordinary shares at 267p per share, and is now valued at £74.2m. Major buyers include Woodford Fund Management, which now holds a 19.99% stake in the company.
At the same time, the company also acquired Q Chip, a Wales-based drug development firm. The company plans to add Q Chip’s sustained drug delivery systems to its own intellectual property. Midatech’s nanoparticle medicines have an array of potential uses, notably in diabetes and cancer. However, it could also license its technology out to other sectors such as cosmetics, electronics, and diagnostics.
Since founding in 2000, Midatech has raised £16.3m over two venture rounds held in 2012 and 2013. The latter round, worth £10m, was backed by Ippon Capital.
Jim Phillips, CEO of Midatech, said: “Midatech is at an exciting stage in its evolution: progressing a portfolio of product programmes towards commercialisation. These products offer multiple revenue opportunities, first through the licensing of partner-supported products and then our own product sales, as Midatech develops into a speciality pharma company with multiple product launches. The acquisition of Q Chip brings further value to our offering, adding a complementary technology platform and a range of additional advanced product programmes that have the potential to deliver accelerated revenue streams.”
