RE:Looks like fuzzy is all in."I think that because too many people think that I'm making this all about me, I have to step back." Are you sure that you are not making it about you instead of Biodexa, jd? You say xB3 is being downplayed in the deal when if you look at Midatech's news release about the deal xB3 is very important. The news release explicitly states BTI is developing xB3 and states it has potential US$200 million in milestones and explicitly lists Chiesi, Prothena, Neuramedy, and J&J in the opening reasons for the deal. Midatech says with the deal early stage licensing deals can be avoided. Biodexa will have critical mass to develop assets internally. The resulting company will be much stronger for a number of reasons listed.
Midatch's News Release:
"Bioasis' lead product is Epidermal Growth Factor, which is being developed for optic neuritis associated with multiple sclerosis (MS). Bioasis is also developing xB3 delivery technology for various rare and orphan neurodegenerative diseases and has entered into licensing and co-development agreements with potential payments, should various performance conditions and milestones be met, totalling in excess of US$200 million plus royalties on net sales with Chiesi Farmaceutici SpA, Prothena Corporation plc and Neuramedy Co. Ltd. Bioasis also has a research agreement with Janssen Pharmaceutica NV, a Johnson & Johnson subsidiary.
Highlights
- Conditional agreement for Midatech to acquire Bioasis, a TSX-V traded biopharmaceutical company focused on research and development of products for the treatment of rare and orphan diseases of the nervous system.
- Bioasis has partnerships with pharmaceutical companies with potential payments, should various performance conditions and milestones be met, totalling in excess of US$200 million and the Enlarged Group intends to focus on rare and orphan therapeutics with two clinical stage candidates initially focused on CNS diseases.
- The Board believes that the Acquisition is a compelling strategic opportunity to advance the Company's repurposed strategy and is expected to deliver a number of key benefits to Midatech and its shareholders, including:
- transition from a drug delivery platform-based company to a therapeutics company;
- a focus on rare and orphan diseases, conferring advantages such as:
- smaller, lower cost studies;
- higher in-market prices; and
- marketing exclusivity for seven years and 10 years in the US and Europe, respectively;
- less reliance on R&D collaborations and licences with third parties;
- improved news flow including clinical data; and
- lower combined overheads.
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Commenting, Stephen Stamp, CEO of Midatech, said:
"We are very pleased to be announcing the proposed acquisition of Bioasis, together with an associated US$10 million equity fundraising and other proposals that the Midatech board believe presents a compelling strategic opportunity aimed at delivering significant benefits to Midatech and its shareholders.
"By combining the two groups to create Biodexa Pharmaceuticals, we have the opportunity to reposition the enlarged group as an emerging biotech company focused on the development of therapeutics for rare diseases, supported by Midatech and Bioasis' enabling drug delivery platforms. We continue to believe there is substantial value to be unlocked from Midatech's MTX110, particularly in our ongoing phase I clinical trial in GBM, and to leverage our Q-Sphera technology. In combination with Bioasis' promising development pipeline we have the opportunity to create a much stronger group and transition from a drug delivery platform-based company to a therapeutics company.