Why the Starpharma (ASX:SPL) share price is up 27% in 2021

The Starpharma Holdings (ASX: SPL) share price is having a reasonable day today. During 2021, however, it's appreciated by nearly 27%.

| More on:
asx share price spark represented by smiling lady holding sparkler

Image source: Getty Images

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

While the Starpharma Holdings Limited (ASX: SPL) share price is having a reasonable day today – up 0.77%, it's done very well so far in 2021.

At the time of writing, shares in the pharmaceutical company are trading for $1.96 cents each. While that's only slightly up on yesterday's close, it's up 26.95% since the beginning of the year and almost 120% over the last 12 months. In fact, in February, the Starpharma share price hit an all-time record of $2.52. For comparison, the S&P/ASX 200 Index (ASX: XJO) has increased 4.36% year to date.

Let's take a closer look at developments that have impacted the Starpharma share price in 2021.

What's affected the Starpharma share price in 2021?

The biggest factor impacting the Starpharma share price in 2021 has been its Viraleze COVID-19 nasal spray. The product, which was launched in January, has been clinically shown to kill 99.99% of COVID-19 virus loads in a person.

After launching in January, the European Union approved the product for use in its jurisdiction in February. When the company announced the news, CEO Dr Jackie Fairley said at the time:

We know from consumer research conducted with the Boston Consulting Group, that VIRALEZE has strong appeal for European consumers across all age groups. The spray is easy to use and convenient – and works rapidly, without being absorbed into the bloodstream. If you are about to walk into the supermarket, you would use it. The same is true for public transport, elevators, planes, bars and restaurants.

Obtaining the CE Mark for the spray led to the Starpharma share price hitting its record high.

One month later, the company told shareholders it would distribute the spray in the UK through LloydsPharamcy. Despite what was seemingly positive news, the share price fell that day. One explanation as to why is that investors had already factored in widespread distribution of the product after EU approval, including in the UK.

Non-COVID announcements

While the Viraleze spray was the most attention-grabbing product launch announced in 2021 by Starpharma, it was not the only one.

In February, the company announced it was expanding clinical trials on an anti-cancer treatment developed with AstraZeneca PLC (LSE: AZN). In March, Starpharma declared to the market its breast cancer treatment, DEP HER2-lutetium, had achieved "positive" results.

As well, the company posted its half-year results for FY21 in February. Starpharma lost $10.4 million for the 6 months ending 31 December. The loss was 78% greater than the prior corresponding period (pcp). The pharmaceutical company attributed the large decline to an even steeper fall in revenue. For the period, operating income was only $638,000, which was down 89% on the pcp. The Starpharma share price edged slightly lower following the update.

Marc Sidarous 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 Healthcare Shares

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

CSL share price leaping higher amid $1.9 billion funding news

ASX 200 investors are bidding up the CSL share price on Wednesday.

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Mesoblast share price rockets 36% on breaking FDA news

ASX investors are sending the Mesoblast share price soaring following promising FDA news.

Read more »

a doctor in white coat and stethoscope stands in front of a building holding an electronic device in his hands.
Healthcare Shares

Guess which ASX 200 healthcare share is jumping 7% on a guidance update

This healthcare share is performing better than expected in FY 2024.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

1 ASX healthcare stock that looks severely undervalued

I think this stock looks too cheap to miss.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Healthcare Shares

Own Medibank shares? Here's why it's a rewarding day for you

Shareholders are getting a healthy boost today.

Read more »

Health professional looking at a laptop.
Healthcare Shares

Are CSL shares a must-buy in March?

Let's see what analysts are saying about this high-quality company.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

This ASX healthcare stock is up 72% on FDA news and 'historic moment'

Huge gains are been recorded by this stock on Tuesday. But why?

Read more »