LONDON (ShareCast) - (Sharecast News) - Midatech Pharma has entered into an agreement with Kanwa Holdings, an investment vehicle affiliated with financial services firm Barings, to sell Midatech Pharma US for total consideration of up to $19m, it announced on Thursday.
The AIM-traded firm said the initial consideration for the sale and transfer of the entire common stock of MTP US was $13m, payable upon closing, with up to $6m available by way of further consideration dependent on the 2018 and 2019 net sales performance of certain MTP US products, both individually and in aggregate.

It said the sale remained subject to, among other things, the approval of Midatech's shareholders.

"The divestment of Midatech's US commercial arm will allow us to streamline and reshape the business from a specialty pharma to a pure play biotech company, and focus all our energy, attention and resources on advancing our innovative, higher value R&D oncology pipeline," said Midatech Pharma chief executive officer Dr Craig Cook.

"Our technologies have recently reached key validation milestones in their development and following completion we intend to accelerate this momentum for our programs and platforms as we look to unlock the full value of our pipeline and address diseases with desperate unmet medical needs."

Jon Rotolo, Head of Barings Alternative Investments' private equity and real assets team, added that he was "excited" to acquire the Midatech US supportive care business.

"We look forward to expanding patient access and increasing the breadth of therapeutic options available to cancer patients who experience significant adverse effects and quality-of-life issues associated with cancer treatments," Rotolo said.

"This transaction will align with our focus on the specialty pharmaceutical healthcare sector within our private equity and real assets platform."

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