Midatech Ltd., a global leader in the design, synthesis and manufacture of nanomedicines based on its unique biocompatible gold-nanoparticles (GNP), is pleased to announce that is has successfully raised £10 million through the issue of new equity. The investment round was led by Ippon Capital SA, a Geneva-based private equity firm, which committed £7.6 million with the remainder coming from existing investors.
The funding will be used to advance Midatech’s core portfolio of product development programmes for diabetes and cancer with the aim of commercialising these products via partnering and licensing agreements. Midatech will also look to license out its novel GNP technology for new nano-medical applications in diagnostics and imaging and in non-core fields such as cosmetics and electronics with the aim of building additional revenue streams.
Midatech’s core diabetes portfolio is being developed and commercialised through MidaSol Therapeutics LP, a strategic joint venture formed with MonoSol Rx, a global leader in film drug delivery technology. MidaSol’s products include glucagon-like-peptide (GLP-1)-linked GNPs for the treatment of Type 2 diabetes mellitus and its lead product candidate, MidaForm™ insulin PharmFilm®, which uses insulin-linked GNPs (MidaForm insulin) formulated into PharmFilm, for the delivery of insulin through the inside of a patient’s cheek. Phase IIa clinical studies with Midaform insulin PharmFilm, in diabetes patients, are expected to report results in the second half of 2014.
MidaSol recently announced its first research collaboration with a major US pharmaceutical company. The collaboration will allow the pharma company to evaluate the application of GNP and PharmaFilm® technologies with certain molecules in its diabetes portfolio.
Commenting on the fundraising, Dr Jim Philips, CEO of Midatech, said: “Ippon Capital is a new and ambitious investor in the healthcare sector and its investment along with the continuing support of our existing investors provides a strong endorsement of our strategy and confirms the significant potential of our gold-nanoparticle technology. We will now look to rapidly progress the development and commercialisation, through partnering and licensing, of our technology for the treatment of diabetes and cancer and to work to commercialise new applications in medical diagnostics and imaging.”
Pavlo Protopapa, Founder and Managing Partner of Ippon Capital, said: “Midatech’s gold-nanoparticle technology has huge potential to improve treatments for diabetes and cancer and offers the prospect of significant additional revenue streams through the licensing of the technology in fields such as diagnostics, imaging, cosmetics and electronics. Ippon Capital is pleased to be able to support Midatech with this investment at what is an exciting time in the Company’s development and we expect the commercialisation of its technology to deliver significant value in years ahead.”