Shock! Another biotech raises money

Melbourne microbicide developer Starpharma has raised at least $4.3 million through a private placement to new and existing investors.

While secondary raisings have been scarce since the global financial crisis hit, Starpharma joins another Melbourne biotech, Mesoblast, in finding willing institutional and sophisticated investors.

Mesoblast, which is developing a range of mesenchymal stem cell therapies, announced last week it had raised $10 million from private investors, allowing it to continue its clinical program.

The specialist microcap fund Acorn Capital led the placement.

Starpharma’s CEO Dr Jackie Fairley said in a statement to the stock exchange that the additional funds would provide operating capital to continue the company’s commercialisation of its VivaGel coated condom with partner SSL International, maker of the Durex brand.

VivaGel is a microbicide aimed at protecting against HIV and other STDs. It is being developed as both a coating for condoms and as a stand-alone, vaginally applied product.

The company also has a technology platform based on nanoparticles called dendrimers, for drug delivery and targeted diagnostics applications, amongst others.