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…

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Harmoney share price rise represented by two staffers high fiving in the office

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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.

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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.

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