Melbourne, Australia:  Starpharma Holdings Ltd (ASX:SPL;OTCQX: SPHRY) today released its annual report and financial results for the year ended 30 June 2012.

 Financial Results

• Cash burn (cash outflows before new capital) for the year $9.9M
• Cash position at end of year $42.8M
• A$35 million placement and share purchase plan
• Reported loss $13.7M

Operational Highlights

• Full enrolment of the first of Starpharma’s two Phase 3 studies for VivaGel^® as a treatment for BV; second Phase 3 trial nearing full recruitment.
• FDA and European (EMA) agreement on BV treatment Phase 3 design including Special Protocol Assessment (SPA) by FDA. 
• Full recruitment for the Phase 2 clinical trial to investigate the ability of VivaGel^® to prevent the recurrence of BV.
• Starpharma’s dendrimers improve efficacy of docetaxel in breast cancer model.
• Expansion of the development program with partner Lilly.
• Priostar^® dendrimers result in significant improvement in performance of glyphosate (Roundup^®).
• VivaGel^®-coated condom agreement signed with Ansell.
• Starpharma elevated to S&P/ASX300 index.
• Signing of an agreement with Nufarm, one of the world’s leading crop protection companies.

 Commenting on the results, Starpharma CEO Dr. Jackie Fairley said: “The 2012 financial year has been an exciting period of progress across all of our programs.  The VivaGel^® trials, both for prevention of recurrence of BV and the treatment of BV, have enrolled exceptionally quickly and our two pivotal Phase 3 trials now stand at 100% recruited and more than 90% recruited respectively.”

“The capital raising in November 2011 which brought major new international investors onto the register has also allowed Starpharma to accelerate and expand our internal agrochemical and drug delivery programs.  This investment is already yielding exciting developments such as the excellent efficacy result seen with our improved docetaxel formulation reported earlier this year” Dr Fairley added.

Net cash outflows from operating and investing activities for the year were $9.9 million (2011: $6.6 million), with cash reserves at 30 June 2012 of $42.8 million (2011: $18.9 million).  Net cash inflows from financing activities of $33.7 million resulted from net proceeds of shares issued during the period (2011: $3.5 million).

 The net loss after tax of $13.7 million (2011: $8.9 million) was consistent with the company’s forecasts and strategic plans.  Total revenue and other income for the year was $2.9 million (2011: $3.3 million) with a reduction in grant funding of $1.0 million from the previous year, offset by an increase in interest revenue on the higher cash balance.

 The increase in expenditure this year is driven primarily by the acceleration of Starpharma’s Phase 2 and two concurrent Phase 3 clinical trials for VivaGel^® in bacterial vaginosis (BV), and the internal development programs for drug delivery and agrochemicals.  Starpharma’s internal drug delivery program, which has a focus on improvement of the blockbuster cancer drug docetaxel (Taxotere^®), is also advancing rapidly with plans underway for clinical trials in 2013.  The agrochemical program includes the application of Starpharma’s dendrimers to enhancing the performance of important leading agrochemical agents such as Glyphosate (Roundup^®).

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