Why the Starpharma share price raced 5% higher today

The Starpharma Holdings Limited (ASX:SPL) share price has raced higher on Thursday after the release of a positive announcement…

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The Starpharma Holdings Limited (ASX: SPL) share price has been a positive performer again on Thursday.

In afternoon trade the dendrimer products developer's shares have stormed almost 5% higher to $1.44.

Why is the Starpharma share price racing higher?

Investors have been buying Starpharma's shares today after it provided an update on its VivaGel BV product.

According to the release, the VivaGel BV product has been launched in Europe by pharmaceutical giant Mundipharma under the brand name Betadine BV.

Betadine BV has been launched in several countries in Europe, including Germany, with a further roll-out in additional European countries expected during the year. It will be available over-the-counter (OTC), without the need to see a doctor or obtain a prescription.

This is now the second region to launch VivaGel BV and represents a large commercial opportunity for Starpharma with access to more than 260 million women.

What is VivaGel BV?

The release explains that VivaGel BV is a novel, non-antibiotic therapy for treatment and prevention of bacterial vaginosis (BV).

BV is the most common vaginal condition worldwide and twice as common as thrush. It is also a troublesome and often recurrent condition that causes unpleasant vaginal odour and discharge symptoms that can have significant social impacts for women.

The condition has also been associated with a range of other serious reproductive health-related medical problems.

What now?

The launch of Betadine BV in Europe triggers a milestone payment of US$0.5 million (~A$0.72 million) to Starpharma. After which, the company is eligible to earn total milestones up to US$24.7 million, plus revenue share, for all territories under Mundipharma's licence.

Starpharma's CEO, Dr Jackie Fairley, said: "We are delighted to achieve another territory launch of VivaGel BV this year, and our first with Mundipharma. Europe represents a very important market for VivaGel BV and we're delighted that our breakthrough product will be available to millions of European women who suffer from BV."

She added: "Mundipharma have an excellent track record in the OTC space and a leading position in feminine care with their successful international brand BETADINE. We look forward to working with Mundipharma on further registrations and launches across the globe."

The company also advised that the two parties are working together on further launches of VivaGel BV in Europe and also in other regions, such as Asia. Regulatory activities are underway for multiple countries across Mundipharma's regions.

Elsewhere in the healthcare sector today, the Sonic Healthcare Limited (ASX: SHL) share price has dropped lower after offloading a non-core asset and the Mayne Pharma Group Ltd (ASX: MYX) share price has surged higher despite there being no news out of the embattled pharmaceutical company.

James Mickleboro 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.

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