BDRX

• Portfolio progress: Brexpiprazole and tacrolimus Q-Sphera internal programs moved from formulation to preclinical; preclinical data for brexpiprazole; tacrolimus needs one more formulation iteration. 213, 214, 216 collaborations: proof-of-concept formulations delivered for 214 and 216, partner in vivo testing ongoing. MTX110: DIPG program moving to Phase II, GBM program to Phase I. • MTX110 details: Prioritized GBM due to larger market; preclinical evidence for GBM; DIPG Phase II study setup with FDA input, but challenges with patient recruitment. • Q-Sphera programs: 214 and 216 partner studies to yield data soon; 213 working on expanded research collaboration proposal. • Biologics: Midatech team increased drug loading for monoclonal antibody in Q-Sphera microspheres threefold, overcoming denaturation challenge; working on dissolution assay and injectability. • Cash runway: Extended to Q1 2023 with current cash ~£12 million, assuming in-house programs.

• Cash runway extends to the first quarter of 2023. • Guidance is conservative, assuming zero license fees from third parties.

In the first-half of 2021, revenues increased due to collaboration on Q-Sphera programs. R&D costs were approximately £2 million, admin costs were £1.6 million, resulting in a net loss of just over £3 million (about £0.5 million per month). The balance sheet was cleaned up with Spanish loans repaid, and cash on the balance sheet was £4.5 million, with an additional £9 million raised in July, bringing current cash to ~£12 million, providing a runway into the first quarter of 2023. Revenue contribution was from collaboration on Q-Sphera programs, with costs reduced due to no longer reflecting Spain closure and operating costs.

• Termination attempts by former partners: Former partners sought to terminate licenses twice, with Midatech rejecting demands. • DIPG program challenges: Very few patients and difficulty in recruiting eligible patients. • Biologics challenges: Need to develop dissolution assay to measure product dissolution over time.

Q: Could you talk a little bit more detail about some of the technical challenges that have been overcome in recent times with Q-Sphera and those to be addressed in the next 12 months?

A: Major challenge overcome is encapsulating protein in Q-Sphera microspheres without denaturing. Next hurdle is increasing drug loading, and working on dissolution assay and injectability.

Q: Were you disappointed with the termination of the Dr. Reddy partnership and was it due to their molecules not being suitable for Q-Sphera?

A: Dr. Reddy's molecule was challenging from the start, not well suited to PLGA microsphere formulation, but disappointment is part of the process.

Q: Is there a strategic desire to widen partnerships to get Q-Sphera technology to market quicker?

A: Goal is to maintain balanced portfolio; want small number of internal programs for timelines and potential auctions, but also some partnered programs.

Q: Whether MTD201 program is still looked at and its value?

A: Data for MTD201 is good but focus has moved to wider opportunities as it couldn't find a licensee.