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Starpharma Holdings Limited

Starpharma Holdings updates shareholders at AGM, share price out-performs ASX 200 Index

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At the company's AGM today, Starpharma Holdings (ASX: SPL; OTCQX: SPHRY) chairman Peter Bartels updated investors on the year that was.

He was understandably upbeat on Starpharma's prospects, underpinned by a A$7.1 million capital raising, 43% higher revenues, a fall in cash burn to A$2.9m, positive cash flow of US subsidiary DNT and the commercial advancement of the dendrimer platform technology.

A further capital raising is in the offing, the company is in a trading halt and a voluntary suspension pending its finalisation in the coming days.

"Last year I spoke about our full licence agreement with SSL International for the commercialisation of the VivaGel-coated condom. This partnership, from which Starpharma estimates receipts in excess of A$100 million, represents our most significant commercial milestone to date."

"Of particular note is our research, licence and commercialisation agreement with Eli Lilly’s animal health division Elanco.  The deal with Elanco marks the entry of Starpharma into this new and growing market sector. We are working with them to develop new animal health products with enhanced properties using Starpharma’s dendrimer technology, resulting in future revenue from research fees, milestone payments, and royalties on sales of any product developed."

"The development program for our lead product VivaGel has continued to produce positive clinical trial results adding to the already significant body of evidence which demonstrates its potential not only as a condom coating but as a standalone product as well.

"And finally our dendrimer technology platform has been advanced significantly in this last year through its application to drug delivery and drug optimisation programs, with some particularly exciting results in cancer drugs."

CEO Dr Jackie Fairley provided an update to shareholders.

Of particular note, Starpharma's share price has out-performed the ASX200, ASX300 Healthcare and ASX Small Ordinaries Indexes over the past 12 months.

The company currently has A$10.2 million cash on hand.  Shares on issue are 207.2m and a market capitalisation of A$124 million.

The VivaGel coated condom - which has a simpler regulatory path than drugs - is expected to generate royalty revenues, commencing in CY 2011.

VivaGel is in clinical trials. The gel aims to protect women from sexually transmitted infections (HIV,HSV-2, HPV, bacterial vaginosis).  It is in clinical development with US$26M National Institute of Health support.

Dendrimers – there are multiple partnerships already in place:

– Drug delivery (Lilly/Elanco, GSK/Stiefel and various confidential )
– Medical technology (Siemens, Aldrich, Merck, Qiagen)
– Agrochemical deal with multi-billion dollar US Co.
– Other opportunities: Industrial, cosmetic, water treatment

Looking ahead Jackie Fairley saw the following as Value Drivers for Starpharma:

Advance VivaGel®-Coated Condom to market:

- Complete co-development with SSL plc
- Regulatory filings and approvals for VivaGel -coated condoms
- Commencement of royalty revenue – currently estimated for CY11

Advance VivaGel through clinical development:

- Start and complete Phase-2 dose-ranging study for Bacterial Vaginosis
- Phase-3 clinical study for Bacterial Vaginosis leading to product registration
- Complete IIa trials and advance Herpes/HPV/HIV efficacy trials

Expand dendrimer-based commercial relationships and programs:

- Advance existing collaborations - pharmaceuticals, diagnostics, agrochemicals
- Potential sales of first agrochemical product
- Establish new, “no downside" licensing partnerships – medical and industrial

Quick facts: Starpharma Holdings Limited

Price: $1.14

Market: ASX
Market Cap: $421.9 m
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