Starpharma SPHRY, Australian ADR, my favorite

[Billy T]

As my first post I tell why I listed SPHRY as “favorite stock” in registration process but note I own it so this is self serving. Judge it for yourself. Here are some of my older file notes for background you cannot now get. Get newer data at Starpharma | Innovations in nano-medicine.

Starpharma has 11 active patent families, 38 issued patents, 44 pending applications (as of early 2008, I need to update my file)

SPHRY effectively controls dendrimer IP as now owns DNT (Deal details and more at Welcome) which has several dendrimer industrial products on the market. First commercial product was Priostar but many others such as dendrimer containing paint for keeping barnacles from attaching to oil tankers, etc. SPHRY’s main products in development are medical, especial the lead product: VitaGell.

Dendrimers, are symmetric 3D nano-particles with many binding sites that can have several different drug molecules and other molecules attached. For example toxic drugs attaching only to cancer cell sites. – No more hair loss and sickness from systemic toxic drug therapy. Also dendrimers can be used to activate the immune system and or target drugs to specific organs, etc. but VitaGell’s non-invasive use for prevention of Sexually Transmitted Diseases, SDT is main medical thrust at present:

About Starpharma & VitaGell, a vaginal cream, applied via small disposable tube) :
SPHRY is world leader in dendrimer-based medicine. VivaGel (SPL7013 Gel) is a vaginal microbicide designed to prevent the transmission of STDs, (especially for HIV and genital herpes) and was first dendrimer* to go through the FDA. Custom designed dendrimers latch onto other molecules or viruses to block their action., Starpharma estimates the U.S. market for VivaGel products at $4 billion but global market is larger as in many locations a woman has little choice about exposure to SDT. The man need not know Vita-Gell has been applied hours earlier. Because of this potential to control SDTs, international grants and contract payments from US’s NIH paid for 100% of VivaGel development costs, yet they have no commercial claims on it.

VivaGel® as a condom coating:
Since October 2007 SPHRY has been working with condom manufacturer SSL International (globally one of the largest and owner of Durex®), to co-development condoms with a VivaGel coating. Note in all SDT applications, VivaGell does not enter the blood stream but binds to virus that could to make them harmless. Receipts under SSL’s Durex agreement are estimated to exceed A$100m from royalties on sales, milestones, and R&D support.

SPHRY also has development agreements with EMD Biosciences for siRNA and DNA transfection applicartions. Nanojuice™ a DNA transfection kit was launched April 2008. Also a Stiefel Laboratories Agreement to apply SPL’s 9 technology to delivery of drugs through skin and other agreements with Unilever. There are potential applications for arthritis and cosmetic treatments as in April 2008 SPL7013 was found to inhibit hyaluronidase.

Of some importance is that SPHRY is an ADR giving exposure the currency of Australia.

[Billy T]

To earn my required two posts I note I have been active with same user name at SciForums.com - Science Forums where there are many posts related to economics. Including one that suggest in detail a way to stop the importation of hard drugs (Phase out paper money so truck load of coins is needed to pay for shoe box of hard drugs, or else there is a "paper trail" for the police.) and one in 2005 forecasting the current economic crisis. (Telling that the housing bubble would collapse and blaming Greenspan's prolonged easy credit for that.)

Also one prior to Congress even voting on Paulson's plan telling how and why it would fail. In it I noted that a real fix needed to address the fundamental problem, which at least as the trigger was:
Easy credit moved too many into houses they could not afford (and in general to live beyond their means with homes used as ATM machines). They now need to be assisted to get into home (or even trailers if need be) that they can afford. Here is the plan I suggested that should have been applied:

The "toxic assets" would have more value immediately than their owners had even hoped for and at less cost to the government (taxpayers) than buying them at any price the bank etc could accept, IF the government automatically, via the FHA, bought all foreclosed homes (with no other buyer) at the price of the unpaid mortgage. This effectively abolishing the risk of toxic asset default but only a small fraction of the mortgages are actually taken over and their remaining term is available to spread the government’s cost over still. FHA then rents them for a few years, thus keeping them off the resale market until it recovers, instead of depressing more home owners into an “under water” condition as is now the case. I.e. the tax payer get real assets instead of toxic trash, and also helps the economy to recover more quickly.

Five other advantages are also described, at other site but I give this main detail here of three posts here for those who do not want to visit it. (To make this post a "worthwhile" second post and qualify me for other features here.)

[Billy T]

Fast rising now. Here is part of why:

September 22, 2009 (PR NewsWire)
Starpharma Holdings Limited (ASX: SPL, OTCQX: SPHRY) today announced that it has received notification of the grant in the US of a key patent specifically relating to the use of SPL7013 to protect against sexually transmitted infections (STIs).

The granting of this patent means that any product presentation of SPL7013 (the active ingredient in VivaGel(R) ) is now protected in the US for an additional five years until 2024, with a possible further 12 month extension to 2025. Given the importance of genital herpes and other STIs in the US, this market is clearly a major commercial opportunity for VivaGel(R) products.

This composition of matter patent is the third patent for VivaGel(R) to be granted in the US, and adds to the already extensive patent coverage for the product in 26 countries covering all major markets.

VivaGel(R) is being developed as a condom coating in collaboration with SSL International plc (LSE: SSL), the world's leading condom company. SSL markets the global brand Durex(R), and holds approximately 40% of the global branded condom market. Following a deal announced in 2008, SSL has exclusive marketing rights for the VivaGel(R) coated condom.

Starpharma is also developing VivaGel(R) as a vaginal microbicide to prevent the transmission of STIs, including HIV and genital herpes.

About Starpharma

Starpharma Holdings Limited (ASX: SPL, OTCQX: SPHRY) is a world leader in the development of dendrimer nanotechnology for pharmaceutical, life-science and other applications. SPL has two operating companies, Starpharma Pty Ltd in Melbourne, Australia and DNT, Inc in the USA.

The Company's lead pharmaceutical development product is VivaGel(R) (SPL7013 Gel), a vaginal microbicide designed to prevent the transmission of STIs, including HIV and genital herpes. In September 2008 Starpharma signed a full licence agreement with SSL International plc (LSE: SSL) to develop a VivaGel(R) coated condom. Starpharma's receipts under the agreement are estimated to exceed A$100m comprising royalties on SSL sales, further milestone payments, and development support.

[Billy T]

Note sphry closed up more than 12% today (23Sept09) vs. yesterday and is up exactly 500% from the 12 month low.

[Billy T]

up only 3.25% today (24Sept09) - This is not a "penny stock" - it closed at $4.80/ ADR sh. (but on friday, profit taking dropped it to $4.50 at CoB. - I.e. still up about 9% in the week.)

[Billy T]

Following is quoted from Merriman, Curham, Ford report of 11 May 2009.

“We believe Starpharma represents one of the most unique investment opportunities in the infectious disease space given its strong nanotechnology platform (from which VivaGel was derived), as well as the large market opportunities that VivaGel is looking to address, namely the prevention of HIV and genital herpes infections. With a condom coating application in development, we believe Starpharma is maximizing the market potential of VivaGel to maximize share-holder value. {Billy T added note: HIV developes resistance to drugs in about 1/3 of the cases - better to never let it into the body via VitaGell. - Prevention is much cheaper for public health services than treatment.}

... (Large block of text about VitaGel and condom coating's billion dollar markets omitted here as I have described them in prior posts.)

Collaborations and Partnerships Abound
The focus of our report has been exclusively on the VivaGel compound and its commercial and clinical prospects, but Starpharma also has many other programs in development, which we believe add to the overall technology value of the company. We have not included them in detail in this report, but will at such time we believe they will have a viable bottom line impact on the company's P&L. Additionally, we need to see more clinical data on these programs before we are able to handicap their probability of future success. Starpharma currently has agreements, collaborations or partnerships with the National Institutes of Health, Durex, Merck, Stiefel, Unilever, Aldrich, Dade Behring, Qiagen and Dow Chemical.

The Durex Collaboration:
In September 2008, Starpharma entered into a collaboration with Durex. Under the terms of this agreement SSL secures marketing rights to the VivaGel coated condom in most of the world, including Europe and the U.S. Starpharma estimates that its receipts under the agreement will exceed A$100 million comprising royalties on SSL sales, further milestone payments and development support.

The Stiefel Laboratories Collaboration:
In December 2007, Starpharma entered into a collaboration with Stiefel Labs. The collaboration will apply Starpharma’s dendrimer technology to deliver drugs through the skin with the aim of improving the effectiveness and tolerability of certain dermal treatments. Under the terms of the agreement, Starpharma will receive staged payments on the successful completion of technical milestones within the collaborative project. The agreement also deals with commercialization rights arising from the collaboration. Confidentiality provisions restrict disclosure of further details of the collaborative program and agreement.

The Elanco Collaboration:
In May 2009, Starpharma entered into a collaboration with the animal health division of Eli Lilly & Co., Elanco. The parties will collaborate to develop new animal health products with enhanced properties using Starpharma’s dendrimer technology. Under the agreement, Starpharma will receive revenue from research fees, and is eligible for milestone payments and royalties on sale of any product developed. Elanco will receive exclusivity within the animal health field. Terms were not disclosed.

Diagnostics:
Starpharma maintains a license agreement with Dade Behring, a subsidiary of Siemens AG, for the use of fifth-generation polyamidoamine (PAMAM) dendrimers in the company’s (Stratus CS) cardiac analysis instrument. The Stratus CS instrument enables physicians to determine whether patients are having a heart attack or indigestion by detecting protein biomarkers that are released into the bloodstream during a heart attack as a result of damaged heart muscle. Starpharma’s dendrimers are used in the instrument to anchor key antibodies to a specimen tester. Starpharma maintains a license agreement with Dade Behring and receives royalties associated with the sales of Stratus SC.

Transfection Reagents:
SuperFect. Starpharma licenses a dendrimer to Qiagen that is used for DNA transfection. SuperFect offers rapid, efficient transient and stable transfection efficiencies. This SuperFect dendrimer consists of radiating branches with charged amino groups. The resulting positively charged DNA complexes then bind to negatively charged receptors on the surface of eukaryotic cells, enter the cell, fuse with the endosomes and ultimately inhibit lysosomal nucleases. Starpharma maintains a license agreement with Qiagen and receives royalties associated with SuperFect sales.

PrioFect. Starpharma signed a license and supply agreement with EMD Biosciences in February 2007 for use of PrioFect in the transfection of small interfering RNA (siRNA). PrioFect offers efficient transfection, reasonable toxicity and the potential for therapeutic use. EMD Biosciences licensed PrioFect for the global distribution of laboratory kits. According to the agreement, Starpharma will receive payment for materials and royalties on sales. EMD Biosciences is expected to market PrioFect kits during 2007. Importantly, Starpharma retained all rights to therapeutic applications of PrioFect and expects to explore additional therapeutic application partnerships.

[Billy T]

My recommendation is up about 300% and IMHO, is soon to double as its P2 is nearing completion with positive results already known.

I have not been active here for a year, but will read a few posts now

[Billy T]

Just noting SPHRY is now above $17/ADR (about 450% gain from when I said buy it) share with several big positive developments and new products