Starpharma subsidiary awarded $3.5 million by US govt

Dendritic Nanotechnologies (DNT), a subsidiary of Melbourne organisation Starpharma, has received $US3.5 million ($6.3 million) from the United States government to establish facilities for applied dendrimer research and development at Central Michigan University (CMU).

The funding, which is for one year with the potential for further funding after that, comes from the Defense Appropriations Bill signed by US President George W Bush last week.

"The funding demonstrates strong US government interest in the broad range of applications of dendrimer nanotechnology, particularly its use as protection against biological and chemical warfare," said Starpharma CEO Dr John Raff.

Starpharma and DNT are already working on several defence-related projects.

DNT was established as a partnership between Australian pooled development fund Starpharma (ASX: SPL) and dendrimer pioneer Dr Donald Tomalia. Starpharma is the major shareholder in the company, which is located at CMU.

Last week, the Pooled Development Fund Registration Board took the unusual step of approving conversion of DNT from an Australian registered company into a US registered company, which Raff said would make a big difference in DNT being able to attract funding from US sources.

Permission from the PDF Registration Board was required as under Australian regulations, PDFs are restricted from holding interests in foreign companies.

"I believe in this case the PDF Board has given full consideration to Starpharma's unique position and opportunities as an international participant in the strategically important area of nanotechnology. We are very grateful for their positive consideration of our application, and I believe it will be of benefit to Australia's internationally competitive position in the exciting new area of nanotechnology," Raff said.

Starpharma will continue to hold exclusive commercialisation rights for pharmaceutical applications of the dendrimer technology.