Starpharma loss widens during "important" year

Starpharma (ASX:SPL) burned through a chunk of its cash reserves in FY14 as it made progress with its three major development programs.

The company ended the year in a cash position of $24 million, compared to $33.8 million in FY13. Its reported loss also increased to $14.6 million, from $5.2 million in the prior year. Net cash burn for the year was $9.8 million.

Starpharma attributed the higher loss in part to spending on its clinical programs, as well as to lower R&D tax incentive income compared to the prior year.

During the financial year, Ansell secured TGA certification for a line of condoms coated with Starpharma’s VivaGel antimicrobial gel. The company also commenced a phase III trial of VivaGel for the prevention of recurrent bacterial vaginosis.

Cancer drug candidate DEP-docetaxel also entered the phase I trial stage, and Starpharma signed an expanded deal with AstraZeneca covering exploring using its DEP dendrimer drug delivery technology for other cancer treatments.

Starpharma’s agrochemical business meanwhile signed more partnerships with crop protection firms covering the company’s Priostar dendrimer technology, including evaluation deals with US-based Gowan Company and India’s Makhteshim Agan.

“It has been a year of important milestones for Starpharma,” CEO Dr Jackie Fairley commented. “[The progress with our three programs] positions Starpharma strongly for commercial success.”

Starpharma (ASX:SPL) shares were trading 1.69% higher at $0.722 as of around 2.30 pm on Monday