Here's why the Starpharma (ASX:SPL) share price just stormed to a record high

The Starpharma Holdings Limited (ASX:SPL) share price is charging higher again on Friday and hit a record high. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Starpharma Holdings Limited (ASX: SPL) share price has continued its positive run on Friday and charged higher again.

In fact, at the time of writing, the dendrimer products developer's shares are up 4% to a record high of $2.13.

This latest gain means the Starpharma share price is now up an impressive 38% since the start of the year.

Why is the Starpharma share price charging higher today?

Investors have been buying Starpharma shares this morning following the release of a positive announcement.

According to the release, the company has signed a research agreement with global pharmaceutical giant Merck & Co. (MSD).

MSD. is one of the world's largest pharmaceutical companies, generating US$48 billion in revenue in 2020.

What is the agreement?

The agreement will see MSD conduct a preclinical research evaluation of dendrimer based Antibody Drug Conjugates (ADCs) utilising Starpharma's proprietary DEP technology.

Starpharma's CEO, Dr Jackie Fairley, commented: "MSD is a recognised leader in oncology, and we are delighted to have signed this new Research Agreement in such an innovative and valuable area."

The release explains that DEP ADCs exploit the unique potential of Starpharma's DEP technology to provide enhanced characteristics to ADCs. This includes greater homogeneity, site specific attachment, and higher drug antibody ratio (DAR) than conventional ADC approaches.

It is worth noting that Starpharma has previously demonstrated the significant advantages conveyed by DEP ADCs in multiple preclinical studies. This includes with its DEP HER-2 ADC study, which showed significant tumour regression and 100% survival, outperforming Herceptin & Kadcyla in a human ovarian cancer model.

Furthermore, this won't be the first potential product of its kind. The company notes that its DEP technology has already yielded four clinical stage oncology products. This includes one under development by another pharmaceutical giant, AstraZeneca.

If these developments are successful, it could bode well for the Starpharma share price in the coming years.

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Share Gainers

3 ASX 200 shares tipped to climb another 35%

These shares have helped push the ASX 200 Index higher.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Boss Energy, Macquarie, Nova Minerals, and WiseTech shares are storming higher today

These shares are climbing more than most on Tuesday. What's going on?

Read more »

Green stock market graph with a rising arrow symbolising a rising share price.
Share Gainers

Guess which ASX mining stock is rocketing 80% today on huge Philippines news

This small-cap ASX mining stock is coming close to doubling its value today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Monash IVF, Pro Medicus, Telix, and Woodside shares are storming higher today

These shares are starting the week in a positive fashion. But why?

Read more »

Man in a business suit leaps off a boulder in front of a blue sky.
Share Gainers

3 ASX 200 stocks surging 13% to 36% in this shortened trading week

Investors sent these three ASX 200 stocks flying higher following the Easter break. But why?

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Amaero, Mesoblast, Telix, and Tivan shares are charging higher today

These shares are ending the week on a high. But why?

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Energy Shares

Up 635% in one year, guess which ASX energy share is rocketing again on Friday

Investors are bidding up this surging ASX energy share again today. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Bendigo Bank, EBR Systems, Strickland, and Woodside shares are rising today

These shares are rising on Thursday. But why? Let's find out.

Read more »