Melbourne, Australia; 25 August 2010: Starpharma Holdings Limited (ASX:SPL, OTCQX:SPHRY) today released its annual report and financial results for the year ended 30 June 2010.

Financial Results

• Cash burn for the year $3.9M
• Cash position at end of year $22.8M
• A$15.6 million capital raising completed
• Reported loss $6.4M

Operational Highlights

• Starpharma and Lilly sign new drug delivery collaboration
• VivaGel^® coated condom – good progress towards market
• VivaGel^® retains potent and longstanding antiviral activity following human administration
• Successful VivaGel^® safety and tolerability study in sexually active women
• Agrochemical collaboration signed

Commenting on the results, Starpharma CEO Dr Jackie Fairley, said:  “Starpharma has closed the year with a strong cash position.  This year has seen the company advance the development of VivaGel^® and related products, and broaden its dendrimer technology pipeline.  Starpharma continues to advance its partnership program with a diverse range of world-leading companies to accelerate the development of products.”

Progress with the development VivaGel^® included the successful completion of a clinical trial supporting its ongoing development both as a stand-alone gel targeting genital herpes and HIV, and through its partnership with SSL International, as the VivaGel^®-coated condom. 

Cash reserves of $22.8 million at 30 June 2010 (2009: $11.6 million) are a result of prudent management of cash, successful capital raising and continuing partnering revenues, and interest received throughout the year. Adjusting for foreign exchange movements, cash burn was $3.8 million for the 2009/2010 financial year, compared with $4.2 million the previous year.

Starpharma reported a net loss after tax of $6.4 million (2009: $4.1 million).  This was consistent with the company’s strategic plans and budget estimates, with the increase largely due to a combination of expensing of share-based payments in the current year and the positive impact of foreign exchange gains booked in the prior year.

Starpharma successfully raised $15.6 million through the completion of an institutional share placement in November 2009.  The placement was led by Orbis, an existing Starpharma shareholder, with the participation of Acorn Capital, the company’s largest shareholder.  The funds raised are being used primarily to fund the clinical trial program developing VivaGel^® for bacterial vaginosis (BV), to support the broader product pipeline, and to assist in advancing further partnering opportunities.  Subsequent to the year end the company received FDA clearance to commence a Phase II clinical trial for VivaGel^® as a treatment for BV and this trial is now underway.

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