(MENAFN- ProactiveInvestors - N.America) Drug delivery specialist Midatech's (LON:MTPH) push into cancer and related treatments has stepped up a gear with the launch of anti-emetic Zuplenz in the US.
Acquired from Galena Biopharma in December Zuplenz is a novel orally taken anti-vomiting drug for chemo and radiotherapy patients.
Commercial launch of Zuplenz
Jim Phillips Midatech's chief executive said Zuplenz offers relief from some of the most debilitating side-effects of common cancer treatments.
Generically called ondansetron the oral soluble film eases the problem of gritty residue having to wear a patch and sedative side effects of dissolving tablets and injections.
Zuplenz also leverages Midatech's existing commercial infrastructure in the US he added with sales marketing and administrative functions all beefed up ahead of the launch.
In 2015 more than 20mln prescriptions were written in the US alone for ondansetron half of which were oral dissolving tablets.
The launch reflects a determined effort by the company to increase its presence in both the US and cancer treatments generally.
US footprint grows
Midatech significantly increased its footprint last year with the acquisition of NASDAQ-listed DARA Biosciences for up to 19.5mln.
The speciality pharma group paid 15.8mln in shares with the remainder paid out in cash dependent on the performance of the business.
The deal is expected to generate positive cash flows in early 2018.
Midatech which listed on AIM last December described DARA as a 'good strategic fit'.
Dara has three main products: a gel that manages pain caused by the inflammation of the mucus membrane; a soluble tablet for oral thrush; and a liquid version of the breast cancer treatment tamoxifen.
At the time Phillips made the point that Dara also brought with it a US commercial footprint that would be a base from where it could launch its own products.
The plan is to build a commercial oncology treatment and supportive care products arm in the US through add-ons such as the Dara deal while in Europe develop its own clinical and pre-clinical candidates in areas such as cancer endocrine disorders.
Targeted drug delivery systems
Many of these treatments in development are re-purposing drugs already on the market and target areas of unmet medical need such as brain tumours liver and pancreatic.
For example dosing recently began for MTX110 a treatment for diffuse intrinsic pontine glioma (DIPG) an ultra-rare and currently fatal childhood brain tumour.
Midatech has revenue generating partnership agreements with five blue-chip and specialist pharma companies.
It has two platforms carbohydrate-coated gold nanoparticle and its sustained release system but both are about getting medicines to the right place in the right quantities at the right time.
The company's gold nano-particles or GNPs for short promise a revolution in targeted therapies for cancer.
It is a highly targeted approach that allows physicians potentially to administer lower doses and it also means there is little collateral damage.
Its Q-Sphera technology works in a different way to deliver the drug at the right time.
It is a sustained release platform and has adopted 3D and ink jet printing techniques to create particles that dissolve in a 'certain way over a certain time-scale'.
Midatech also has a joint-venture with Monosol Rx of the US to develop a strip that slowly dissolves in the mouth to rapidly deliver insulin.
Broker sees revenues growing rapidly
Potentially more effective and faster acting than the other non-injected forms of the medication it provides a painless easy to use alternative to pumps and needles.
Midatech plans to be profitable within 'four to five years' but could break-even earlier if it lands acquisitions that bring in additional income or perhaps even their own sales teams.
Panmure Gordon has forecast sales this year (2016) will rise to 9.1mln and to 14.5mln the following year.
'With the company's wider commercial footprint in the US we expect Midatech to further replicate what it has done with Zuplenz with other product opportunities in due course.'
The broker has a massive target price of 467p or two and half times the current177.4p up 10% the announcement of the Zuplenz launch. At that level Midatech was worth around 38mln.
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