Midatech Pharma (NASDAQ: MTP), a small cap pharma stock, has rocketed up 113% in pre-market trading this morning on news that its MTX102 drug, which is in clinical trials as a diabetes vaccine, has gotten positive results in a phase 1 clinical trial.
SeekingAlpha reports this rise on what it calls “robust volume” in reaction to promising developments for the drug’s efficacy in treatment of type I diabetes.
Midatech Pharma News
“This EU project brings together a consortium comprising eight complementary partners, including two small and medium enterprises, one technology transfer company and five academic laboratories, from four EU … and Israel,” said lead investigator Colin Dayan in a press statement. “We are pleased to have completed the initial project, based on Midatech’s gold nanoparticle technology, to evaluate a vaccine approach for the treatment of Type 1 diabetes. The study now enters a follow up stage, at the end of which we will review the data and program, together with the EU consortium partners.”
Midatech uses gold nanoparticles in conjunction with substances to target molecules for treatment. The same gold nanoparticle technology that’s in some of the other programs is a key foundation of the MTX 102 trial, where in the last study, there were no serious adverse events reported.
“The aim of the study is to assess the safety of the company’s MidaCore gold nanoparticle technology that the company says enables the more efficient delivery of immunogenic peptides and tolerizing agents to immune cells to dampen autoimmune responses in disorders like T1D,” writes Douglas House.
The company is also building on successful funding results earlier this year.
“It’s been a strong start to the year for Midatech,” said Jim Phillips in an interview earlier in 2019.
As Phillips revealed, Midatech is also conducting trials for MTX110, a drug proposed to treat tumors in children which received IND approval and is getting a two phase rollout for centers in New York and California.
That news is now driving Midatech to new heights, although as of press time at 10:30a.m. the equity has slid back down to $2.25, a 72% hike from yesterday’s prices.