Australian Financial Review Journalist Brendon Lau investigates the activity of fund managers across a number of key stocks: Emerging biotech Starpharma Holdings has also found itself in demand by institutional investors in the wake of its recent capital raising.

The stock could re-rate, just as Mesoblast did, because M&G – one of the largest UK investment funds that is owned by Prudential Group – bought a 6.7 per cent stake in Starpharma.

M&G also became a major shareholder in Mesoblast in December last year and the stock has rallied around 80 per cent since.

Wall Street Journal Reporter Gillian Tan investigates M&G’s stake in Starpharma: ‘M&G emerged with a 6.7 per cent stake in the company after participating in Starpharma’s $32m oversubscribed institutional placement which raised funds to –among other things — accelerate the commercialisation of its VivaGel product which will include a New Drug Application filing with the United States’ Food and Drug Administration.’

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M&G has today lodged a substantial shareholder notice with the ASX advising a 6.7% shareholding in Starpharma following their investment of AUD$20 million in the Share Placement announced last week.

Starpharma today announced that the Phase 3 clinical trial program for VivaGel^® bacterial vaginosis (BV) treatment has now also been agreed with the European Medicines Agency (EMA).

Australian Financial Review Journalist Claire Stewart investigates Starpharma’s continued resilience in a difficult market, noting the significance of its $32m capital raising at market price: As market volatility shakes investors’ confidence, the share prices of many research and development-focused companies are suffering as a result of increasing concerns about capital availability and funding issues.

But for Starpharma, a $260 million pharmaceutical company that develops polymer – or dendrimer – nanotechnology, equity has not been an issue.

This week it raised $32 million through a share placement to institutional investors and it will launch a retail share purchase plan to raise an additional $3 million, opening on November 23.

Australian Life Scientist notes the significance of M&G’s investment in Starpharma: ‘Starpharma Holdings (ASX:SPL) has raised $32 million in a placement, and will seek a further $3 million in a SPP, to help fund clinical trials and new product development.’

AAP analyses how M&G’s investment will advance Starpharma’s research portfolio:  ‘A $32 million cash injection has given a boost to biotech Starpharma's plans to carry out advanced tests of a treatment for a common bacterial infection in women.

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 Starpharma is pleased to announce it has successfully raised A$32 million via a placement to international and domestic institutional, sophisticated and professional investors.  It is intended to offer eligible existing shareholders the opportunity to also participate via a Share Purchase Plan to raise up to a further A$3 million.

Starpharma released its AGM Chairman's address and CEO presentation for the meeting held 10th November 2011. Results of voting were released following the meeting.