Why the Starpharma Holdings Limited share price rocketed higher today

The Starpharma Holdings Limited (ASX:SPL) share price was a huge mover on Friday. Here's what you need to know…

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One of the biggest movers on the market on Friday was the Starpharma Holdings Limited (ASX: SPL).

Its shares finished the day higher by over 15% to $1.21.

Why did its shares rocket higher?

This morning the dendrimer products developer announced that its phase 1 trial for DEP docetaxel has achieved the key objective of determining a Recommended Phase 2 Dose with no reports of protocol-defined dose limiting toxicities.

Essentially, what this means is that usage of the company's DEP docetaxel product did not result in any life-threatening toxicity seen in virtually all patients treated with conventional docetaxel formulations. Docetaxel is a chemotherapy medication used to treat a number of types of cancer.

According to the release, encouraging signs of anti-cancer efficacy were observed in approximately half of the DEP docetaxel-treated patients for a range of tumour types. These also included cancers that do not typically respond to docetaxel.

In light of this success, phase 2 trials of DEP docetaxel will commence immediately.

Should you invest?

Should DEP docetaxel become the standard of care then it certainly would be a lucrative drug to have in the company's portfolio.

After all, docetaxel is one of the most widely used cancer drugs for treatment of a wide range of solid tumours including breast, lung, and prostate. It is marketed by Sanofi Aventis as Taxotere and has generated peak global sales in excess of US$3 billion.

But while this is undoubtedly promising news for all involved and could mean Starpharma has a bright future ahead of it, it is worth remembering that there is still a long road ahead before the company comes close to generating revenue from DEP docetaxel.

In light of this, I would suggest investors keep Starpharma on their watchlist and consider an investment in industry behemoth CSL Limited (ASX: CSL) for now instead.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

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