Financial Data and Key Metrics Changes - The first half of 2020 saw a significant non-cash impairment charge of £11.59 million due to the cessation of the MTD201 program [29] - The operating loss for the first half was similar to the previous year, with expectations for a lower loss in the second half due to the closure of operations in Spain [31] - At the half-year mark, the company had net cash of £3.59 million, with a pro forma net cash position of £9.7 million after recent fundraising efforts [32] Business Line Data and Key Metrics Changes - The company has shifted its focus from MTD201 to a diversified pipeline with nine molecules covering 11 indications, enhancing risk allocation [17][18] - The Q-Sphera technology is now the core of the company's strategy, with two collaborations signed in a short timeframe, indicating a more balanced approach to internal and external programs [14][16] Market Data and Key Metrics Changes - The strategic review was initiated due to the collapse in capital markets and the withdrawal of a prospective licensee, impacting the company's operational strategy [5][6] - The company is exploring expressions of interest in individual assets while terminating the formal sale process due to a lack of credible offers [10] Company Strategy and Development Direction - The realigned strategy focuses on licensing Q-Sphera products to pharmaceutical companies for multimillion-dollar milestones and royalties, reducing cash requirements and resource intensity [11][16] - The company will no longer undertake human clinical studies unless fully funded by collaborators, allowing for more simultaneous projects [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position and the traction gained from the Q-Sphera strategy, projecting a cash runway into the fourth quarter of 2021 [33] - The company is cautiously optimistic about the future, with plans to approach regulators for potential early approval of MTX110 if Phase II studies yield positive results [27] Other Important Information - The company is negotiating with contract manufacturing organizations (CMOs) to continue the production of Q-Sphera products following the closure of its Bilbao facility [43][44] - The company intends to maintain both its AIM and Nasdaq listings [45] Q&A Session Summary Question: What are the expected timelines for collaborations to convert to formal development partnerships? - Management indicated that the partner controls the timetable, with a target to land the first license fee in the first quarter of the following year [35] Question: Is there an update on the situation with Secura Bio? - The company is considering a negotiated settlement rather than a costly court process, as the license agreement is not favorable [37][38] Question: Will MTD201 be considered for sale if the right offer arises? - Management confirmed that MTD201 could be sold if a suitable offer is made, as it has provided valuable proof of concept for Q-Sphera technology [39][40] Question: Is the current strategy the long-term direction for the company? - Management affirmed that the current strategy is indeed the long-term plan, focusing on early partnerships rather than costly clinical trials [41][42] Question: How will the company manufacture Q-Sphera products going forward? - The company is in discussions with CMOs to utilize salvaged equipment from Bilbao for clinical trial scale manufacturing [43][44] Question: What is the status of the EU SME status application? - Management expressed frustration over the delay in response from the EU regarding SME status, which affects funding opportunities [48][49][50] Question: Has there been an independent assessment of the company's value post-strategic review? - Management mentioned that brokers have provided valuation models, estimating the company's value at approximately £65 million [51][52]
Biodexa Pharmaceuticals PLC(BDRX) - 2020 Q2 - Earnings Call Transcript