Starpharma (ASX:SPL) share price tanks 3% on 67% revenue drop

Starpharma shares are taking today…

| More on:
share price dropping

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

The Starpharma Holdings Limited (ASX: SPL) share price has dropped 2.76% this Thursday as the pharmaceutical company reported its earnings for the financial year ended 30 June 2021 (FY2021).

Starpharma share price slumps as revenues fall, losses mount

  • Revenues from continuing operations of $2.15 million, down 67% compared to the prior corresponding period of FY2020 (pcp)
  • Total revenues and other income of $3.5 million, down 50.7% from pcp
  • Loss after tax of $19.73 million, an increase of 34% over the pcp's loss of $14.7 million
  • No final dividend was declared for FY2021

What happened in FY21 for Starpharma?

The financial year just passed was a wild one for Starpharma, as evidenced by the company's share price range over the past year. With a 52-week high of $2.51 a share and a low of $1.12, investors have certainly been erratic at valuing this company's shares.

Back in February, investors lit a rocket under Starpharma shares when it announced that its Viraleze nasal spray, which has antiviral applications, gained successful registration for sale in Europe. That included the United Kingdom (UK). This news seemed to be the driving force behind Starpharma reaching its new all-time high in February. However, since then, the road has been rockier.

In June, the company took a bit of a hit. The UK Medicines and Healthcare Products Regulatory Agency pinged Starpharma for "allowable promotional claims" promoting Viraleze as a potential preventative measure against COVID-19 infection. The Starpharma share price fell around 10% at the time.

However, last month, the shares once again got a boost when Starpharma announced that Viraleze "has potent virucidal activity against the Delta variant of COVID-19".

What did management say?

Here's some of what Starpharma CEO Dr Jackie Fairley had to say on Starpharma's FY21 numbers today:

2021 has been a remarkable year for all of us around the world. Despite the impact of the unrelenting global pandemic, Starpharma was able to continue to recruit into our three DEP phase 2 clinical programs and achieve a number of important commercial milestones across the business. These included the rapid development and launch of VIRALEZE… 

The company is extremely proud to have developed, registered and launched VIRALEZE ahead of schedule and in time for it to play a role in the evolving situation in Europe.

What's next for Starpharma?

Dr Fairley also stated that the year ahead will see Starpharma focus on its DEP drug delivery platform. As well as  progressing "further registrations, distribution arrangements and launches for VIRALEZE in other regions". It will also aim for further registrations and launches of its VivaGel product.

Although the Starpharma share price is down more than 3% today, the company's losses for 2021 so far are now sitting at 19.8% year to date. The company is also down around 7.15% over the past 12 months. At the current Starpharma share price of $1.24, the company has a market capitalisation of $501.51 million.

Motley Fool contributor Sebastian Bowen 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.

More on Earnings Results

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

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 »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Earnings Results

Brickworks share price tumbles on disappointing half-year loss

This loss didn't stop the company from increasing its dividend again.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Energy Shares

New Hope share price charges higher despite profit crunch and huge dividend cut

Weaker coal prices have hit this miner's profits and dividend hard.

Read more »

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices
Earnings Results

Liontown share price tumbles 7% on half-year results

This lithium developer's results have been released this afternoon.

Read more »

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.
Earnings Results

Sayona Mining share price jumps despite $32m half-year loss

The Sayona Mining Ltd (ASX: SYA) share price is pushing higher on Thursday. At the time of writing, the lithium…

Read more »