Melbourne, Australia; Starpharma Holdings Limited (ASX:SPL, OTCQX:SPHRY) today released its interim report and financial results for the half-year ended 31 December 2013. 

Financial Summary

• Reported loss of $5.6M (Dec 2012: $1.8M)
• R&D tax incentives of $2.6M reported in the half-year (Dec 2012: $6.8M)
• Cash position at 31 December 2013 of $27.8M
• R&D tax incentive receivables at 31 December 2013 of $7.3M

Operational Highlights

• DEP^TM docetaxel eliminates neutropenia and completes preclinical development ahead of commencement of a Phase 1 clinical trial in January
• DEP^TM oxaliplatin shows improved efficacy and reduced toxicity
• Agrochemical partnerships with Gowan and Isagro
• Received approval for an additional estimated A$2.3 million cash in R&D tax incentive for overseas R&D activities for its DEP^TM docetaxel program
• Rob Thomas appointed to the Starpharma Board

The net loss after tax of $5.6 million (Dec 2012: $1.8 million) includes the expenses of the VivaGel^® clinical program, together with development expenses in drug delivery and agrochemical programs. 

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

“The Company is well placed to capitalise on important upcoming commercial milestones in 2014. Starpharma continues to make progress across its three portfolio areas, VivaGel^®, drug delivery and agrochemicals. Starpharma’s DEP™ programs are demonstrating consistent benefits in terms of efficacy and the reduction of toxicities, whilst DEP^TM docetaxel recently reached a strategically important milestone by moving into the clinic. The successful finding for R&D tax incentive relating to DEP^TM docetaxel provides additional financial leverage for this and other DEP™ programs.”

A contra research and development expense of $2.6 million (Dec 2012: $6.8 million) has been recorded for research and development activities eligible under the Australian Government’s R&D Tax Incentive program. In the previous half-year to 31 December 2012, $4.1 million of the $6.8 million were recorded, relating to FY2012 R&D tax incentives which had not been previously recorded, due to uncertainty of eligibility. Thereby, the increase in net loss for the December 2013 half-year over the corresponding period, is due to the “catch up” in recording the R&D tax incentives in the half-year to December 2012.

The cash balance at 31 December 2013 was $27.8 million, compared with $33.8 million at 30 June 2013. This balance excludes the anticipated $7.3 million receivable under the R&D Tax Incentive Program, of which $4.7 million will be received this financial year. 

Clinical trial costs for both VivaGel and DEP™ docetaxel contributed to the net cash outflows from operations of $6.0 million (Dec 2012: $10.2 million). These include the recently commenced Phase 1 clinical trial of DEP^TM
docetaxel, and significant set up activities already undertaken for the Phase 3 prevention of bacterial vaginosis (BV) clinical program for VivaGel^®.

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