Not enough: Starpharma (ASX:SPH) share price plunges despite 200% revenue growth

Starpharma shares closed in the red on Monday as the company released its financial results for the half-year ended 31 December 2021.

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Key points
  • Starpharma reported its half yearly results on Monday. 
  • Investors appear to have been chasing more from the company's interim results yesterday, and shares fell sharply to close 5% in the red. 
  • The Starpharma share price has tanked more than 57% in the past 12 months. 

The Starpharma Holdings Ltd (ASX: SPH) share priced closed in the red on Monday after the company released its interim report and financial results for the half-year ended 31 December 2021.

Starpharma shares finished the day 5% down at 98.5 cents.

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A medical researcher rests his forehead on his fist with a dejected look on his face while sitting behind a scientific microscope with another researcher's hand on his shoulder, as if giving comfort.

Image source: Getty Images

Starpharma share price tanks amid earnings growth

Key takeaways from the company's earnings results today include:

  • Cash balance at 31 December 2021 $51.3 million, excluding $7.7million received in January 2022 for the FY21 R&D tax incentive refund
  • Revenue of $1.9 million, up 200% on the prior corresponding period (pcp), including significant sales of VIRALEZE in Vietnam following the product's launch in December 2021
  • Net operating cash outflows of $11.2 million, excluding $7.7 million of R&D tax incentive refund
  • Reported loss for half-year of $8.4M, 19% lower than pcp of $10.4 million

What else happened this half for Starpharma?

The company hit a number of milestones surrounding its product offerings and clinical trial momentum during the half. For example, successfully launched its Viraleze label in Vietnam following registration and signing of a sales and distribution agreement in the region.

As a result, the product is now available through a number of the largest pharmacy chains in Vietnam both in store and online. Starpharma says that, collectively, these pharmacy chains have approximately 1300 pharmacies throughout Vietnam.

The company also achieved launches for Viraleze in Italy, Saudi Arabia and New Zealand during the half, each significant milestones per the release.

"Regulatory processes are ongoing in a number of markets, including Australia and other countries in the Middle East. In the UK, dialogue continues between Starpharma and the UK regulator, MHRA", the company remarked.

Starparma's loss for the period of $8.4 million reduced by 19% and was underlined by increased sales of Viraleze on a lower cost base.

Management Commentary

Speaking on the announcement, Starpharma's CEO, Dr Jackie Fairley said:

Starpharma has achieved a number of valuable milestones throughout the half-year across our DEP® portfolio. We were delighted to sign a new DEP® Research Agreement with a leading global pharmaceutical company. This
new partnership builds on our existing relationships with AstraZeneca, Merck & Co., Inc., and Chase Sun. It has also been exciting to see AstraZeneca expand the potential indications for AZD0466 through a new clinical trial in patients with advanced non-Hodgkin's lymphoma, which is expected to commence shortly.

What's next for Starpharma?

The company will endeavour to build out each of its product offerings throughout the remainder of 2022, namely through ongoing clinical trials and country launches.

Aside from that, no formal guidance was provided by the company on Monday.

Starpharma share price snapshot

The Starpharma share price has tanked more than 57% in the past 12 months and is down 26.5% this year to date as well.

In the past week it has lost 4% and after collapsing another 14% in the previous month.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns 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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