Starpharma Holdings Ltd (ASX: SPL) shareholders are sitting on gains of more than 100% for the month after the company announced a new collaboration with Radiopharm Theranostics Ltd (ASX: RAD).
The junior biotechnology company's stock was up 13.6% in early trade to 25 cents, compared with the closing price of 12 cents at the start of September.
And over a 12-month period, the gains are even more impressive, with the low over the past year being 8.2 cents per share.
Starpharma said on Tuesday it had signed a research and option agreement with Radiopharm following six months of preliminary research.
Starpharma will apply its proprietary DEP platform technology to develop and manufacture a dendrimer-drug conjugate that incorporates a radiopharmaceutical molecule under development by Radiopharm. Starpharma will receive R&D service and manufacturing fees for this phase of work, with activities to commence immediately.
Under the licence agreement, Starpharma is eligible to receive a $500,000 option fee, a $2 million upfront payment, and up to $89 million in success-based milestones and royalties on net sales.
This agreement marks a key milestone for Starpharma as the company's first radiopharmaceutical partnership and the first Star Navigator program to advance into a formal research collaboration.
Second dose of good news this month
The Radiopharm agreement follows another deal Starpharma struck with major drug company Genentech, which was announced earlier in September.
Under that deal, which had been in the works for three years, Starpharma was in line for success payments of up to US$564 million ($857.4 million).
Starpharma specialises in "dendrimer" technology, which involves manufacturing nanoscale molecules for use in pharmaceutical applications.
Starpharma Chief Executive Officer Cheryl Maley said on Tuesday that the Radiopharm deal was a key milestone for the company and provided external validation for the potential of dendrimers in the area of radiopharmaceutical drug development.
Radiopharmaceuticals are a key area of focus for Starpharma. Our strategy involves developing high-value, differentiated assets and forming strategic partnerships, all supported by robust scientific data. Over the past 12 months Starpharma has worked diligently to optimise our internal DEP radiotheranostics program, while actively showcasing the unique capabilities of dendrimers at high-profile scientific conferences. These events have generated industry interest and opened new avenues for collaboration.
Radiopharm Theranostics Chief Executive Officer Riccardo Canevari stated that the targeted radiotherapeutic sector is evolving rapidly.
We are committed to exploring different and innovative options, which have the potential to improve the efficacy and the safety of new radiopharmaceutical vectors. We are excited by the opportunity to work with the capable team of Starpharma to pursue this important and ambitious goal.
Radiopharm Theranostics shares were 3.4% lower at 2.8 cents.
