Starpharma launches a fully underwritten $32 million entitlement offer to fund the Phase 1 trial of its DEP® HER2-Lutetium radiopharmaceutical and accelerate its targeted oncology asset development.
- Fully underwritten $32 million entitlement offer at $0.57 per share
- Funds to complete DEP® HER2-Lu Phase 1 trial and expand oncology pipeline
- DEP® HER2-Lu preclinical data supports strong tumour targeting and retention
- New patent filed for DEP® radioligand therapy platform
- Radiopharm Theranostics milestone triggers $0.5 million option fee
Capital Raise to Fuel Clinical Progress and Pipeline Expansion
Starpharma Holdings Limited (ASX:SPL, US OTC:SPHRY) has kicked off a fully underwritten renounceable entitlement offer aiming to raise approximately $32 million at $0.57 per share, representing a 25% discount to the recent ASX closing price. The capital injection is earmarked to complete the first-in-human and dose escalation stages of its DEP® HER2-Lutetium (DEP® HER2-Lu) Phase 1 clinical trial and to accelerate the development of novel dendrimer-based oncology assets.
With a pro forma cash position expected to reach $44.5 million post-offer, including a $3.5 million R&D tax incentive, Starpharma is extending its cash runway into FY28. The raise underlines the company’s commitment to advancing its proprietary dendrimer platform in targeted oncology, particularly radiopharmaceuticals, a sector experiencing rapid growth and strategic interest globally.
DEP® HER2-Lu Shows Promising Preclinical Profile
Starpharma recently completed the preclinical data package for DEP® HER2-Lu, its lead proprietary radiopharmaceutical candidate designed for HER2-expressing cancers such as gastric and gastro-oesophageal junction cancers. The data demonstrated strong tumour uptake and retention exceeding 48 hours, with minimal kidney exposure and rapid blood clearance, key attributes for an effective radioligand therapy.
This differentiated profile was achieved through the dendrimer-enhanced design, which leverages Starpharma’s DEP® technology to improve tumour targeting and tolerability. In mouse models, DEP® HER2-Lu showed durable tumour growth control and survival benefits comparable to Enhertu®, the current standard antibody drug conjugate, highlighting its potential in an area of significant unmet medical need where many patients progress within a year of existing therapies.
Supported by FDA feedback and completed GMP manufacture of the DEP® HER2 precursor dendrimer, Starpharma is preparing to initiate the Phase 1 study in Europe in the second half of calendar 2026. The trial will focus on safety, pharmacokinetics, tumour targeting, and dosimetry, with initial data expected in the first half of 2027.
Strengthening Intellectual Property and Partnerships
In tandem with clinical progress, Starpharma filed a new patent application covering its DEP® technology in radioligand therapy, reinforcing its intellectual property position across multiple oncology targets including HER2, PSMA, and EGFR. This broad patent protection enhances the platform’s appeal for partnering and licensing opportunities.
Strategic partnerships remain a cornerstone of Starpharma’s growth. The company recently triggered a $0.5 million milestone payment from Radiopharm Theranostics under their collaboration, commencing an option period for an exclusive license that could be worth up to $91 million in milestones plus royalties. Starpharma also continues active engagement with partners such as Genentech and Medicxi, advancing its pipeline and business development initiatives.
Revenue Growth and Operational Highlights
Starpharma closed FY26 with an $11.0 million cash balance, boosted by an $8.5 million upfront payment from Genentech and milestone payments from partners. Customer receipts surged 149% year-on-year to $12.3 million, reflecting growing commercial traction in both its clinical and consumer health products, including Viraleze™ and VivaGel® BV.
Operating cash outflows reduced to $3.2 million for FY26, supporting ongoing R&D and clinical trial preparations. The company’s disciplined financial management aligns with its strategic focus on targeted oncology assets and partnership-driven growth.
Risks and Considerations for Investors
While the entitlement offer provides Starpharma with solid funding, investors should note the inherent risks typical of biotechnology ventures. The DEP® HER2-Lu program remains in early clinical development, with outcomes uncertain and dependent on trial results and regulatory approvals. The company also faces typical industry risks including clinical trial delays, competitive pressures, intellectual property challenges, and the need for ongoing capital to fund operations.
Shareholders who do not participate in the entitlement offer will experience dilution, and the share price may be volatile in response to clinical and commercial developments. The underwriting agreement includes customary termination clauses linked to market conditions and regulatory events.
Bottom Line?
Starpharma’s $32 million raise sets the stage for a pivotal clinical trial and pipeline expansion, but clinical and market risks remain significant as the DEP® HER2-Lu program enters human studies.
Questions in the middle?
- Will the DEP® HER2-Lu Phase 1 trial deliver clinical data that differentiates it from existing HER2 therapies?
- How will Radiopharm Theranostics’ licensing decision impact Starpharma’s financial outlook and partnership strategy?
- What new targeted oncology assets will Starpharma prioritize for development beyond DEP® HER2-Lu?