Starpharma (ASX:SPL) share price tanks 3% on 67% revenue drop

Starpharma shares are taking today…
The post Starpharma (ASX:SPL) share price tanks 3% on 67% revenue drop appeared first on The Motley Fool Australia. –

The Starpharma Holdings Limited (ASX: SPL) share price has dropped 2.76% this Thursday as the pharmaceutical company reported its earnings for the financial year ended 30 June 2021 (FY2021).

Starpharma share price slumps as revenues fall, losses mount

Revenues from continuing operations of $2.15 million, down 67% compared to the prior corresponding period of FY2020 (pcp)
Total revenues and other income of $3.5 million, down 50.7% from pcp
Loss after tax of $19.73 million, an increase of 34% over the pcp’s loss of $14.7 million
No final dividend was declared for FY2021

What happened in FY21 for Starpharma?

The financial year just passed was a wild one for Starpharma, as evidenced by the company’s share price range over the past year. With a 52-week high of $2.51 a share and a low of $1.12, investors have certainly been erratic at valuing this company’s shares.

Back in February, investors lit a rocket under Starpharma shares when it announced that its Viraleze nasal spray, which has antiviral applications, gained successful registration for sale in Europe. That included the United Kingdom (UK). This news seemed to be the driving force behind Starpharma reaching its new all-time high in February. However, since then, the road has been rockier.

In June, the company took a bit of a hit. The UK Medicines and Healthcare Products Regulatory Agency pinged Starpharma for “allowable promotional claims” promoting Viraleze as a potential preventative measure against COVID-19 infection. The Starpharma share price fell around 10% at the time.

However, last month, the shares once again got a boost when Starpharma announced that Viraleze “has potent virucidal activity against the Delta variant of COVID-19”.

What did management say?

Here’s some of what Starpharma CEO Dr Jackie Fairley had to say on Starpharma’s FY21 numbers today:

2021 has been a remarkable year for all of us around the world. Despite the impact of the unrelenting global pandemic, Starpharma was able to continue to recruit into our three DEP phase 2 clinical programs and achieve a number of important commercial milestones across the business. These included the rapid development and launch of VIRALEZE… 

The company is extremely proud to have developed, registered and launched VIRALEZE ahead of schedule and in time for it to play a role in the evolving situation in Europe.

What’s next for Starpharma?

Dr Fairley also stated that the year ahead will see Starpharma focus on its DEP drug delivery platform. As well as  progressing “further registrations, distribution arrangements and launches for VIRALEZE in other regions”. It will also aim for further registrations and launches of its VivaGel product.

Although the Starpharma share price is down more than 3% today, the company’s losses for 2021 so far are now sitting at 19.8% year to date. The company is also down around 7.15% over the past 12 months. At the current Starpharma share price of $1.24, the company has a market capitalisation of $501.51 million.

The post Starpharma (ASX:SPL) share price tanks 3% on 67% revenue drop appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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