Melbourne, Australia: Starpharma Holdings Limited (ASX:SPL, OTCQX:SPHRY) today released its interim report and financial results for the half-year ended 31 December 2011.

Financial Results

• Cash position at 31 December 2011 $49.0M
• Net cash outflows from operations $3.9M
• Net cash inflows from financing $33.8M
• Reported loss $4.7M

Operational Highlights

• Commencement of Phase 2 bacterial vaginosis (BV) prevention study of VivaGel^®
• FDA and European (EMA) agreement on BV treatment Phase 3 design including Special Protocol Assessment (SPA) by FDA
• VivaGel^®-coated condom agreement signed with Ansell
• Dendrimer-docetaxel formulation shows significantly greater efficacy than docetaxel in breast cancer animal model
• Drug delivery collaboration with Lilly advances
• Priostar^® dendrimers result in significant improvement in performance of glyphosate (Roundup^®)  
• Completion of A$35 million placement and share purchase plan (SPP)
• Starpharma elevated to S&P/ASX300 index

Commenting on the results, Starpharma CEO Dr Jackie Fairley said:

“This is a very exciting year for Starpharma, as we advance VivaGel^®  into phase 3 clinical trials for bacterial vaginosis.  Strong support for our capital raising in November places the Company in a strong cash position, allowing us to advance the VivaGel^® portfolio optimally, as well as more aggressively exploit our platform technology in drug delivery and agrochemicals.”

The cash balance at 31 December 2011 was $49.0 million, compared with $18.9 million at 30 June 2011, with net equity proceeds of $33.8 million during the period.  Net cash outflows from operations were $3.9 million (Dec 2010: $3.8 million).

The net loss after tax of $4.7 million (Dec 2010: $4.2 million) was consistent with the company’s strategic plans and budget estimates.  The net loss includes the expenses of the VivaGel^® clinical program, particularly in relation to treatment and prevention of bacterial vaginosis (BV), and the internal drug delivery and agrochemical programs.  There was a corresponding decrease in reimbursable research and development expenditure associated with lower US National Institutes of Health income due to the finalisation of these grants.

Half Yearly Report and Accounts ( pdf file, 639kb)