Starpharma (ASX:SPL) share price sinks 5% despite new board member

The company’s shares are reversing yesterday’s gains.

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The Starpharma Holdings Limited (ASX: SPL) share price is deep in negative territory during early afternoon trade. This comes despite the healthcare company announcing an inclusion to its board.

At the time of writing, Starpharma shares are down 5.15% to $1.29.

Starpharma strengthens its board

A possible catalyst to the fall of Starpharma shares is the strong gains made the day before. It appears profit takers have swopped in after the company’s share price ended yesterday with a 7.94% increase.

In today’s statement, Starpharma announced that experienced finance executive, Lynda Cheng will join the board. The new addition will see Ms Cheng appointed as non-executive director from the beginning of next month.

Starpharma noted that Ms Cheng brings a wealth of knowledge, having served more than 25 years as a finance executive. This includes 15 years at recycling and cardboard box manufacturing giant, Visy Industries/Pratt Holdings, and 10 years in investment banking.

Currently, Ms Cheng is the director of Corporate Development and Mergers & Acquisitions at Visy Industries/Pratt Holdings. She has held various roles throughout her career there, with her most notable position as chief financial officer.

Furthermore, Ms Cheng is also a non-executive director at Export Finance Australia and a member of Wesley College Council.

Prior to this, Ms Cheng was a member of the Australian Government’s International Development Policy Expert Panel, as well as deputy chair and chair of the Finance, Audit and Risk Committee of South East Water.

Starpharma chair, Rob Thomas commented on Ms Cheng’s new title, saying:

We are delighted to welcome Lynda at an exciting time for the Company. Lynda brings broad commercial and international corporate expertise as well as an extensive professional network. She has deep experience in financial services, manufacturing, innovation, technology and new market entry.

The appointment of Ms Cheng will add further value to the Starpharma board. As such, Ms Cheng will join the Audit and Risk Committee upon her appointment.

Ms Cheng studied at the University of Melbourne and holds a Bachelor of Law (Honours) and Commerce degree majoring in actuarial studies and economics.

Starpharma share price review

Since hitting an all-time high of $2.52 in February 2021, Starpharma shares have moved on a downwards trajectory. Over the past 12 months, the company’s share price is up more than 10%, but down almost 20% year-to-date.

Starpharma commands a market capitalisation of roughly $517.7 million, with 406 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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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