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Starpharma share price higher on clinical trial update

Phil Harpur
pharmaceutical shares

The Starpharma Holdings Limited (ASX: SPL) share price will be on watch today following an update on its phase 1 trial of AZD0466. At the time of writing, the Starpharma share price is up by 2.16%.

What does Starpharma do?

Starpharma is an S&P/ASX 300 Index (INDEXASX: XKO) company that is a world leader in the development of dendrimer products for pharmaceutical, life science and other applications.

Starpharma has two core development programs: VivaGel portfolio and DEP drug delivery with the company developing several products internally and others via commercial partnerships.

What did Starpharma announce?

Starpharma announced it has received US$3 million (A$4.5 million) from AstraZeneca following the successful dosing of the first patient in the phase 1 clinical trial of AZD0466 in December last year.

AstraZeneca describes AZD0466 as having the potential to be a ‘best-in-class’ agent in this field with a broad opportunity in solid and haematological tumours (blood cancers) due to its ability to target both Bcl2 and Bcl/xL.

The trial is being conducted at multiple sites in the US and will recruit patients with a range of cancers.

As was announced on 30 December 2019, the first patient dosed in the phase 1 trial triggered a US$3 million milestone following commencement of AstraZeneca’s first DEP human clinical trial.

This milestone for AZD0466 falls under the company’s multi-product license with AstraZeneca whereby Starpharma is eligible to receive development, launch and sales milestones of up to US$124 million, plus tiered royalties on net sales for this initial product, and US$93.3 million for each subsequent qualifying product.

Other recent announcements

In other recent market updates, Starpharma reported that its DEP cabazitaxel trial progressed from phase 1 to phase 2 on positive results. The trial met its objective of evaluating safety, tolerability and preliminary efficacy data, and identifying a recommended phase 2 dose. The trial transitioned seamlessly into phase 2, with two new sites initiated and recruitment underway. Patients continue to be recruited into the phase 2 trial for DEP docetaxel.

Starpharma also recently released its quarterly cash flow report for period ended 31 December 2019. The company’s cash balance as at 31 December 2019 was $35.9 million, with net operating cash outflows for the quarter of $0.5 million compared to $4.6 million last quarter.

The post Starpharma share price higher on clinical trial update appeared first on Motley Fool Australia.

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Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020