The Starpharma Holdings Limited (ASX: SPL) share price has been on fire on Thursday following its full year results release.
The dendrimer products developer's shares jumped to a 52-week high of $1.51 at one stage.
How did Starpharma perform in FY 2020?
As you might have guessed from the strong share price gain, Starpharma was on form in FY 2020 and delivered a solid full year result.
For the 12 months ended 30 June 2020, the company reported a 162% increase in revenue and other income to $7.1 million. This was driven by VivaGel product sales and royalties and a $4.34 million milestone payment by AstraZeneca for the first dose of AZD0466 administered in the phase 1 trial of its first DEP product.
Despite this increase in revenue, Starpharma's loss increased by $0.4 million to $14.7 million in FY 2020. Management advised that this reflects the expensing of all research and development expenditure and patenting costs associated with VivaGel and DEP programs. The company now has three phase 2 assets in its clinical product portfolio.
Nevertheless, Starpharma finished the year in a strong financial position with a cash balance of $30.1 million.
"An extraordinary period".
Starpharma's CEO, Dr Jackie Fairley, commented: "The past year has been an extraordinary period for all of us."
"While COVID-19 has impacted companies around the world, Starpharma was able to achieve a number of important milestones during the year, including: significant progress with our internal clinical-stage DEP assets with three products now in phase 2; advancing multiple new development programs, including in antivirals and radiotherapy; in addition to several product launches of VivaGel BV in the UK, Europe and Asia," she added.
COVID-19 nasal spray.
The company also provided some commentary on its SPL7013 product candidate which was tested and found to have significant activity against SARS-CoV-2. This is the coronavirus that causes COVID-19.
Dr Fairley commented: "As the pandemic emerged we also identified an opportunity for a preventative SPL7013 COVID-19 nasal spray. We already knew SPL7013 has broad spectrum antiviral activity, and undertook further testing which established it has significant activity against SARS-CoV-2."
"In a short period of time we have been able to develop nasal formulations, select a manufacturer and appropriate device components, and have undertaken pilot manufacture. We have also held discussions with regulators and confirmed a rapid development pathway. Feedback from key opinion leaders confirms that a SPL7013 antiviral nasal spray could be an important addition in preventing the transmission of COVID19 and complementing vaccine-based strategies," she explained.
Outlook.
No guidance was given for the year ahead, but another busy one is expected.
Dr Fairley concluded: "In the year ahead, we will continue to advance our clinical DEP assets and expand our portfolio by moving up our preclinical programs and explore value-adding combinations to increase the market opportunities. Starpharma is well positioned for further growth as we achieve further approvals and launches in our VivaGel portfolio, as well as accelerating the development of our COVID-19 nasal spray."
