Starpharma raising $23m for clinical programs

Starpharma (ASX:SPL) has raised $18 million, through a placement, to help fund the company’s clinical and commercialisation programs.

The company plans to follow this up with an up to $5 million share purchase plan at $0.65 per share.

Part of the proceeds from the capital raising will be used to support the completion of phase III trials of Starpharma’s VivaGel for the prevention of recurrent bacterial vaginosis (BV), and regulatory and commercialisation activities for VivaGel for symptomatic relief of BV.

Funds will also be used to help advance chemotherapeutic candidate DEP docetaxel from phase I into phase II trials, as well as to advance other development programs, the company said.

Starpharma CEO Dr Jackie Fairley said the capital raising has attracted “strong interest” from the company’s existing institutional shareholders. “We also have welcomed several new local and international funds as shareholders in Starpharma for the first time,” she said.

The company last month revealed that spending on its development programs had reduced its cash position to $24 million as of the end of FY14, from $33.8 million at the end of the prior financial year.

Starpharma (ASX:SPL) shares were trading 6.34% lower at $0.665 as of around 2.30 pm on Monday.