The Starpharma Holdings Limited (ASX: SPL) share price was up 6% to $1.16 on Wednesday, after the company announced a major deal for the distribution of one of its flagship products.
Starpharma signed an agreement with Mundipharma for the sale and marketing of its feminine care product VivaGel BV in several overseas markets including Europe and Russia.
The deal extends the global reach of the medicine, expanding an existing agreement with Mundipharma that covered Asia, the Middle East, Africa and Latin America. Mundipharma will launch VivaGel under its popular antiseptic brand Betadine in early 2019.
Europe in particular is an important market in which Starpharma is ready to tap into, having already obtained the necessary regulatory approvals. Starpharma will receive a share of sales revenue, and up to $33 million of conditional revenue on commercial milestones.
Starpharma is also preparing to launch VivaGel in North America and has lodged an application with the US Food and Drug Administration.
The distribution of VivaGel could prove vital in boosting the company's earnings. In FY17, Starpharma reported a profit thanks to the sale of its Agrochemicals business, but flagged a $15 million loss on its continuing operations. The trend continued in FY18, with a half-year loss of $6 million.
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