Midatech Pharma (MTP) Stock: Continues Skyward On Agreement Finalization

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Midatech Pharma MTP Stock News

Midatech Pharma PLC-ADR (NASDAQ: MTP) is flying early on in the market again today. The stock is following up on gains in multiples that was saw yesterday. While no news has been released, there’s good reason for the gains.

A document started to circulate yesterday showing that a key transaction has closed. This excited investors and that excitement continues today. Below, we’ll talk about:

  • The agreement finalization;
  • what we’re seeing from MTP stock; and
  • what we’ll be watching for ahead.

MTP Gains On Transaction Finalization

As mentioned above, Midatech Pharma is having an incredibly strong start to the trading session this morning, following up on strong gains seen yesterday. With no news out, many are scratching their heads, looking for a reason for the gains.

Nonetheless, the gains seem to be the result of a document that surfaced showing that a key agreement was finalized. Under the agreement, China Medical Systems holdings made a large investment into MTP.

Moreover, the agreement is a collaboration and distribution agreement that surrounds China Medical Systems’ use of MTP technologies. Opening the door to further potential revenue opportunities down the line.

To learn more about the transaction, check out our article from yesterday morning.

What We’re Seeing From The Stock

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Midatech Pharma, the news proved to be overwhelmingly positive.

After all, the finalization of the agreement brings a large amount of funding through the door. Moreover, the company has several revenue opportunities ahead as a result of the collaboration.

So it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:46), MTP is trading at $0.98 per share after a gain of $0.47 per share or 92.01% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on MTP. In particular, we’re interested in following the story surrounding the collaboration with China Medical Systems and the revenue that it brings as it provides an entrance into China. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!

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