Edison Issues ADR Update on Midatech

LONDON, January 6, 2016 /PRNewswire/ --

Midatech closed its all-share acquisition of DARA BioSciences on 7 December (first announced in June), thereby acquiring a presence in the US oncology market via DARA's 20-strong sales force and portfolio of marketed cancer support products. On 18 December, Midatech announced the acquisition of anti-emetic drug, Zuplenz (from Galena, for $3.75m), a strong fit with DARA's existing anti-cancer support products. The new Midatech shares are listed as ADRs on NASDAQ on the back of its recent IPO in the US. Our valuation for Midatech, with our calculations now including DARA and Zuplenz, moves to $221.0m from $200.7m (or $13.29/ADR from $14.45/ADR due to greater share count).

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Our valuation for Midatech increases to $221.0m from $200.7m previously (or $13.29/ADR from $14.45/ADR), as we now incorporate the acquisitions of DARA and Zuplenz. Our valuation for DARA is based on forecast future operating cash flows (excluding potential payments on contingent value rights that are dependent on sales milestones, which exceed our relatively conservative projections). Additionally, we adjust our valuation for Midatech upward as our model has been rolled forward by six months and rebased to 2016.

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For more information please contact:
Katherine Genis  
Edison Investment Research
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Christian Glennie
Edison Investment Research
+44(0)20-3077-5727
[email protected]

SOURCE Edison Investment Research

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