Midatech has released an update on several of its development programmes. Although the Phase IIa trial of Midaform Insulin Pharmfilm® failed to replicate the promising PK profile seen in earlier trials, good progress has been reported in Midatech’s core oncology programmes (MTR103 and MTR104) and the ongoing compassionate use programme in paediatric brain cancer. We have removed Midaform Insulin from our valuation but increased our expectations for MTR103 and MTR104. Our revised target price stands at 283p (from 300p). Although today’s insulin trial results are disappointing, we remain highly positive on Midatech’s prospects in oncology, backed by a growing speciality pharma presence in the USA. We retain our Buy recommendation.