Midatech Pharma (MTP) Stock Rockets On Data

MidaTech Pharma MTP Stock News

Midatech Pharma PLC-ADR (NASDAQ: MTP) is rocketing this morning, trading on gains of around 90% after announcing positive clinical data. Here’s what’s going on:

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MTP Stock Flies On Positive Clinical Data

In a press release issued early this morning, Midatech Pharma announced positive data from a study known as Study 102. In the study, the company assessed the pharmacokinetics and bioavailability of octreotide for subcutaneous and intramuscular routes of administration.

In the release, MTP said that data show that MTD201 can deliver sustained plasma octreotide concentrations within the range needed for therapeutic efficacy. This was achieved with an injection interval of six to eight weeks by either subcutaneous or intramuscular administration.

This is overwhelmingly important for payors, patients and physicians. This is because the current standard of care is more painful and requires hospital visits or nurse supervised treatment. With the successful results, it’s possible that patients will be able to enjoy simpler, less painful, and self-administration of their treatment.

Moreover, MTP said that an extended dose interval may reduce the annual treatment burden for patients in half, cutting injections from 12 to 6 per year. Of course, this means that should all continue to go well, the company’s solution will be more cost effective and patient friendly.

The primary endpoints of the study were to determine the relative plasma octreotide bioavailability and pharmacokinetics of MTD201 deep subcutaneous injection, MTD201 deep intramuscular injection and Sandostatin Octreotide Acetate Injection deep subcutaneous injection.

Importantly, both subcutaneous and intramuscular injections produced a similar extended octreotide PK profile. Not to mention that the octreotide release portfolio suggests that patients can be treated every eight weeks instead of every four weeks as is the standard of care today.

On top of the positive efficacy results, the drug also proved to be very well tolerated. In fact, adverse events were minor and transient injection site reactions with no differences between the two injection routes.

As a result of the positive data, MTP said that it is preparing for the commencement of the next pivotal study for the development of MTD201. It is expected that this study will begin in the first half of 2020.

In a statement, Craig Cook, CEO at MTP, had the following to offer:

We are very pleased with the positive results of Study 102. It confirmed both the subcutaneous dosing route for MTD201, as well as the potential for extended dosing intervals. These are key advantages for patients, physicians and payors, being the first therapy to offer this, and also gives Midatech a competitive advantage versus others as we move the product through to potential approval.

Why Investors Are So Excited

The news released today proved to be overwhelmingly positive. First and foremost, any time a biotechnology company issues positive data, it shows that the company is one step closer to potential regulatory approval. However, these results were even more exciting.

In the trial, Midatech Pharma put MTD201 head to head against Sandostatin, a blockbuster drug developed by Novartis. In the study, the company was able to show that compared to Sandostatin, there are several benefits to patients, including less pain, less frequency of treatment and the potential ability to self-treat at home.

This is overwhelmingly important when you consider the blockbuster value of Sandostatin. In 2018, the drug generated more than $1.5 billion in net revenues for Novartis. Should MTD201 make its way to approval, and prove to be the supperior option, MTP may be sitting on an opportunity worth well over $1 billion per year. For a company with a market cap of just $33 million, that’s a massive opportunity!

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