Highlights

  • Starpharma (ASX:SPL) raised A$32 million to support development of its DEP HER2-Lu radioligand therapy program.
  • The Capital raising received approximately 99% Shareholder participation and extended the company’s runway into FY28.
  • DEP HER2-Lu is planned to enter a Phase 1 first-in-human study targeting HER2-positive cancers.
  • Clinical validation remains the key milestone for the company’s oncology platform.

Starpharma (ASX:SPL) has strengthened its Balance Sheet to advance DEP HER2-Lu, its lead radioligand therapy candidate, towards first-in-human clinical testing.

The capital raising provides funding for the company’s oncology development strategy, with DEP HER2-Lu representing a shift towards radiopharmaceutical applications for its dendrimer technology platform.

However, the program remains at an early development stage, with future value dependent on clinical outcomes and regulatory progress.

What Happened?

On 15 July 2026, Starpharma launched a fully underwritten, renounceable pro rata entitlement offer to raise A$32 million.

The offer provided eligible shareholders with one new share for every 7.5 shares held at the 20 July record date.

The shares were issued at A$0.57 per share, representing a discount to the previous trading price.

By early August 2026, Starpharma reported approximately 99% shareholder participation, issuing 56.1 million new shares.

The company also raised an additional A$5.4 million through oversubscriptions.

The proceeds are intended to fund the Phase 1 study of DEP HER2-Lu, additional oncology development activities and general Working Capital requirements.

Why It Matters

The capital raising provides funding for Starpharma’s transition towards radioligand therapy, an area of oncology development involving targeted delivery of radioactive payloads to tumour cells.

DEP HER2-Lu combines Starpharma’s dendrimer platform with a HER2-targeting component and lutetium-177 radioactive payload.

The company’s strategy is based on improving targeted delivery while reducing exposure to healthy tissue.

For Starpharma, the program represents a move beyond its historical consumer-health and other pharmaceutical activities into a higher-value oncology application.

However, clinical validation is required to determine whether the technology can deliver meaningful patient outcomes.

The Numbers

All figures below are in Australian dollars.

The entitlement offer raised A$32 million, with an additional A$5.4 million from oversubscriptions.

Starpharma reported a pro forma cash position of A$44.5 million as at 30 June 2026, including an expected A$3.5 million Research and Development tax incentive.

The company stated that the funding extends its cash runway into FY28.

The planned Phase 1 DEP HER2-Lu trial is expected to enrol up to 15 patients with advanced HER2-positive cancers.

The study will assess safety, tolerability, pharmacokinetics, biodistribution and organ radiation dosimetry.

The capital raising resulted in approximately 56 million additional shares being issued.

The Bigger Picture

DEP HER2-Lu is based on Starpharma’s proprietary dendrimer-enhanced product platform.

The candidate combines:

  • A HER2-targeting nanobody designed to direct treatment towards cancer cells.
  • Starpharma’s DEP dendrimer carrier technology.
  • Lutetium-177 as the therapeutic radioactive payload.

The company has reported preclinical findings in HER2-positive SKOV3 tumour models, including higher tumour radioactivity compared with blood levels and lower kidney accumulation.

Starpharma has stated that these characteristics contributed to anti-tumour activity and survival benefits in animal studies.

The broader radioligand therapy market has attracted significant pharmaceutical investment, although translating preclinical findings into human clinical success remains challenging.

The Bull Case

The positive case for Starpharma (ASX:SPL) is based on advancing a differentiated delivery platform into a high-interest oncology market.

The DEP HER2-Lu program combines targeted cancer biology with a radioligand approach designed to deliver therapy directly to tumour cells.

The recent capital raising provides resources to begin human testing and continue development activities.

If early clinical results demonstrate acceptable safety and evidence of tumour targeting, the program could support further development and potential partnerships.

Risks Investors Should Understand

Starpharma (ASX:SPL)’s Business faces risks including clinical trial failure, regulatory uncertainty, funding requirements and competition in radioligand therapy.

The Phase 1 study is designed primarily to evaluate safety and dosing, not confirm clinical effectiveness.

Preclinical results from animal models may not translate into human outcomes.

Radioligand therapies also involve potential toxicity risks, including effects on organs such as the kidneys and bone marrow.

Although the capital raising extends the company’s runway, ongoing clinical development may require additional funding.

The HER2 oncology and radiopharmaceutical sectors include well-funded competitors with established development programs.

What Comes Next?

The next key milestone is initiation of the DEP HER2-Lu Phase 1 trial, which Starpharma expects during H2'2026.

Investors will monitor first patient dosing, early safety results and future biodistribution and dosimetry data.

Progress across Starpharma’s broader dendrimer oncology pipeline will also remain relevant.

Conclusion

Starpharma (ASX:SPL) has secured funding to advance DEP HER2-Lu into human testing, marking an important step in its radioligand therapy strategy.

The A$32 million raise strengthens the company’s financial position and supports development of a program based on its dendrimer technology platform.

However, the key value driver remains clinical validation. The upcoming Phase 1 trial will determine whether the preclinical opportunity can translate into a viable oncology treatment approach.