Starpharma shares soar following signing of $2.9m drug delivery deal
SHARES in biotechnology group Starpharma have spiked after it inked a lucrative cancer drug delivery deal with pharmaceutical giant AstraZeneca.
Starpharma, which provides dendrimer applications that improve the effectiveness of existing drugs, will receive $US2 million ($2.9 million) under the initial agreement.
It also stands to pocket up to $US124 million in payments if it hits certain milestones.
Shares in the Melbourne- based company surgedd yesterday following the revelation, closing 13¢, or 21.3 per cent, higher at 74¢.
AstraZeneca, an AngloSwedish company based in London, will fund the development and commercialisation of the tumour treatment, with Starpharma also taking a cut of future sales.
Starpharma chief Jackie Fairley said the tie-up came after its drug delivery technology was applied to an oncology patient sourced by AstraZeneca.
Starpharma also applies its technology to a gel-coated condom that combats bacterial vaginosis, distributed through fellow listed company Ansell, as well as a leading weedkiller.