Starpharma (ASX:SPL) share price dips on quarterly update

The Starpharma share price has dipped in morning trade after the company released its quarterly report for 31 December 2020 today. Let's have a look.

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The Starpharma Holdings Limited (ASX: SPL) share price has dipped slightly today after the company released its quarterly cashflow and activities report for the quarter ended 31 December 2020.

Starpharma is a global biopharmaceutical company that develops pharmaceutical and medical products based on proprietary polymers called dendrimers. Dendrimers are man-made nanoscale compounds that can be used both to enhance existing health products and as entirely new products. 

The company is presently developing Viraleze, an antiviral nasal spray for COVID-19 that is complementary to vaccines and other preventative measures.

Here are some highlights from the company's quarterly update.

woman testing substance in laboratory dish, csl share price

Image source: Getty Images

Starpharma developments during the December quarter

As Starpharma prepares for the pre-launch activities surrounding its new Viraleze product, initial batches are being manufactured to support a European launch.

The report advises that the company is also reaching out to pharmacy chains, B2B customers and online platforms in anticipation of the new product offer.

During the quarter, Starpharma also commenced a human study for Viraleze that is currently taking place in Perth, Western Australia. The results of this study are not necessary to achieve EU product registration. The study is expected to conclude in the first quarter of this year.

Starpharma continues to progress clinical trials for its DEP docetaxel and DEP cabazitaxel products. These treatments are being tested to shrink tumours in patients with pancreatic, oesophageal and gastric cancer.

The company also advised that encouraging trial work moved forward over the three-month timeframe for its DEP irinotecan product, which treats tumour types including breast, colorectal, ovarian, pancreatic, lung and oesophageal cancer. 

Financial highlights

Starpharma's closing cash balance as at 31 December 2020 was $70.3 million. This included $47.0 million in net proceeds following the equity placement and share purchase that took place during the period.

Net operating cash outflows were $7oo,000 for the quarter. The company notes these outflows are predominately related to the Viraleze launch and the DEP product clinical programs. 

Starpharma share price snapshot

The Starpharma share price has currently slid down 0.33% today and is trading at $1.50. Starpharma shares are up 28% on this time last year, and the company has a current market capitalisation of $611 million. 

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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