Starpharma reigns in losses

Starpharma Holdings (ASX: SPL) has reported a reduced loss of AUD$5.5 million compared to last year's loss of $7.7 million, despite a slight drop in revenues.

The company has had a busy year, commencing Phase I clinical trials for its dendrimer-based vaginal microbicide Vivagel in February, and relinquishing its pooled development status in March to allow increased investment into 44.5 per cent owned US-based Dendritic Nanotechnologies (DNT).

CEO John Raff said the strategic positioning of the company was proceeding well, and it was well funded with $15 million cash reserves at the end of the year.

'That gives us 2.5-3 years funding [even] if we get no other income than what we already have lined up," Raff said. "We have sufficient cash, and plenty of opportunities for funding as well as deals coming through."

The company expects to complete its Phase I clinical trial by the end of September and Raff said that he hoped to be able to announce the results before the end of the year. If the trial is successful, Phase II trials are likely to begin early in 2005 to evaluate the product's ability to prevent HIV infection.

"We'll also look at other indications for Vivagel, such as chlamydia and genital herpes, and we're planning to submit INDs for Phase II for these next year," he said.

Raff also said the company was looking at raising its profile in the US, including the possibility of initiating an ADR program.

"We're hoping that DNT will have a very high profile and attract a lot of attention," Raff said.

Key events for 2003-2004:

• Go-ahead from FDA to commence Phase I clinical trial to evaluate safety and tolerability of dendrimer-based vaginal microbicide; trial started in February;
• Shareholders voted to allow board to relinquish PDF status in January;
• PDF registration revoked in March;
• Raised $6.9 million in placement in September, and a further $7.6 million when it relinquished PDF.