Starpharma — Robust cash position supports clinical entry

Starpharma (ASX: SPL)

Last close As at 22/10/2026

AUD0.47

▲ −0.01 (−2.08%)

Market capitalisation

AUD226m

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Research: Healthcare

Starpharma — Robust cash position supports clinical entry

Starpharma’s Q127 update highlights a recently strengthened funding position as its lead DEP HER2-Lu radiotherapeutic approaches first-in-human testing. End-September cash of A$34.4m (end-June: A$11.0m) reflects the A$32m August entitlement offer, with a further A$3.5m R&D tax incentive received on 22 October, taking pro forma cash to A$37.9m. Net operating cash outflow was A$5.9m, including investment in clinical preparation and the targeted oncology pipeline. The company submitted its European clinical trial application for DEP HER2-Lu following quarter-end, with first patient dosing dependent on regulatory clearance and site readiness; initial Phase I data remain targeted for H1 CY27. Starpharma also increased its interest in Petalion to 66% and progressed its Genentech and Radiopharm collaborations. Management maintained its guidance of a cash runway into FY28, consistent with our expectations.

Written by

Arron Aatkar, PhD

Analyst

Healthcare

Q1 FY27 business update

23 October 2026

Price AUD0.490
Market cap AUD235m

US$/A$1.43

Pro forma gross cash at 30 September 2026 (including the R&D tax incentive received 22 October 2026)

AUD37.9m

Shares in issue

479.7m
Code SPL
Primary exchange ASX
Secondary exchange N/A
Price Performance

Business description

Starpharma is an Australian biotechnology company with two decades of experience in advancing dendrimer technologies from the lab to the patient.

Analysts

Arron Aatkar, PhD
+44 (0)20 3077 5700
Jyoti Prakash, CFA
+44 (0)20 3077 5700

Starpharma is a research client of Edison Investment Research Limited

Note: PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue (AUDm) PBT (AUDm) EPS (AUD) DPS (AUD) P/E (x) Yield (%)
6/25 4.9 (9.1) (0.02) 0.00 N/A N/A
6/26 12.1 (5.2) (0.01) 0.00 N/A N/A
6/27e 6.3 (14.4) (0.03) 0.00 N/A N/A
6/28e 15.0 (9.5) (0.02) 0.00 N/A N/A

Net operating cash outflow was A$5.9m, against customer receipts of A$1.0m, including Radiopharm's A$0.5m option fee. R&D payments totalled A$2.6m, incorporating upfront DEP HER2-Lu study costs, while staff payments were A$3.3m. August's A$32m entitlement offer generated A$29.7m net of issue costs. The A$3.5m R&D tax incentive was received after quarter-end and is excluded from September cash. We consider management's runway guidance into FY28 broadly in-line with our estimates, although we note that this is subject to clinical spend and partner payment timings.

The 21 October investor presentation focused on Petalion provided additional detail on work undertaken ahead of the ownership change, including extensive screening and optimisation of proprietary fibroblast activation protein-targeted constructs. Management referred to encouraging early data, although detailed activity and delivery results remain undisclosed. Candidate selection is the next key development test. Starpharma's A$3m cash contribution forms part of its A$7m allocation to expand the internal targeted oncology pipeline, alongside up to A$2m in R&D services.

DEP HER2-Lu remains the principal near-term value driver. Starpharma completed manufacturing of the non-radioactive study material and submitted its European clinical trial application after quarter-end. The planned first-in-human study will assess tumour uptake, tissue distribution, radiation dosimetry and safety. It is due to commence within Q4 CY26, and initial results from three to four patients are targeted for H1 CY27, which should provide the first clinical test of the radiotherapeutic delivery profile underpinning our investment thesis.

Elsewhere, Genentech research activities continued, while Radiopharm entered its exclusive licence-option period. The exercise of this option could unlock up to A$91m in upfront and milestone payments, plus royalties, although these remain contingent on progress. A new patent application covering DEP in radioligand therapy across HER2, PSMA and EGFR provides further platform optionality.

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