Highlights

  • Starpharma launched a fully underwritten $32 million entitlement offer to fund DEP HER2-Lu clinical development.
  • The raise is intended to support first-in-human dosing of DEP HER2-Lu in HER2-positive cancers.
  • Starpharma expects pro forma cash of approximately $44.5 million following completion of the offer.
  • DEP HER2-Lu is being developed as a dendrimer-based radioligand therapy targeting HER2-expressing tumours.

Starpharma (ASX:SPL) has launched a $32 million Capital raising to support the progression of its lead oncology candidate DEP HER2-Lu into first-in-human clinical testing.

The fully underwritten entitlement offer, announced on 15 July 2026, is designed to fund the company's dendrimer-based radioligand therapy program, alongside continued development of other oncology assets.

For Starpharma, the funding provides additional runway to advance DEP HER2-Lu into early clinical testing after the company reported cash of $11 million at the end of FY26.

What Was Announced?

Starpharma announced a fully underwritten 1-for-7.5 pro-rata renounceable entitlement offer to raise approximately $32 million at an Offer Price of $0.57 per share.

The offer represented a 25% discount to the previous closing price of $0.76, with approximately 56 million new shares expected to be issued.

The entitlement offer was underwritten by Canaccord Genuity (Australia) Limited, ensuring the company receives the targeted capital regardless of Shareholder participation.

Eligible shareholders across Australia, New Zealand, Hong Kong, Singapore, the United Kingdom and Luxembourg were invited to participate, with an oversubscription Facility available.

Starpharma expects pro forma cash of approximately $44.5 million following completion of the raise, including an anticipated $3.5 million Research and Development tax incentive receipt.

The proceeds are allocated toward completing the DEP HER2-Lu Phase 1 study, advancing other dendrimer oncology programs and supporting general Working Capital requirements.

Why This Matters

For Starpharma (ASX:SPL), the capital raising provides funding support to move DEP HER2-Lu from preclinical development into human testing.

DEP HER2-Lu applies Starpharma's dendrimer technology to radioligand therapy, combining a HER2-targeting molecule with a radioactive isotope to deliver radiation directly to HER2-expressing tumour cells.

The initial clinical focus is HER2-positive gastric and gastro-oesophageal junction cancers.

Radioligand therapy is an expanding oncology treatment category, but DEP HER2-Lu remains an early-stage program requiring clinical validation.

The company has completed Good Manufacturing Practice (GMP) manufacturing of the dendrimer component and is preparing a European clinical trial site ahead of planned first-in-human dosing.

Company Background

Starpharma (ASX:SPL) is an Australian biopharmaceutical company focused on its proprietary dendrimer technology platform.

Dendrimers are highly branched nanoscale polymers that can be engineered for drug delivery, improved compound solubility and targeted therapeutic applications.

The company's historical commercial activities have included drug delivery partnerships and VivaGel antiviral products.

DEP HER2-Lu represents one of the company's most advanced applications of dendrimer technology in oncology, alongside other DEP-branded cancer development programs.

Financial Position

Starpharma closed FY26 with cash of $11.0 million at 30 June 2026.

The company reported full-year net operating cash outflow of $3.2 million, compared with $6.8 million in FY25.

Customer receipts increased 149% to $12.3 million during FY26, although the company noted this was largely influenced by a one-off upfront payment and is not expected to repeat at the same level.

Following completion of the entitlement offer, Starpharma expects pro forma cash of approximately $44.5 million, including the anticipated R&D tax incentive receipt.

The additional funding is expected to extend the company's operational runway into FY28.

What Comes Next?

The next major milestone for Starpharma (ASX:SPL) is first-in-human dosing of DEP HER2-Lu, targeted for the second half of calendar 2026.

The Phase 1 study is expected to evaluate dose escalation in patients with HER2-positive gastric and gastro-oesophageal junction cancers.

Investors will monitor confirmation of the European clinical trial site, initial safety data, dose progression and any partnering interest in the radioligand program.

As the raise is designed to support Phase 1 development rather than later-stage registration activities, future funding requirements will depend on clinical progress and Partnership outcomes.

Risks

Starpharma (ASX:SPL) remains exposed to early-stage clinical development risks, including uncertainty around safety, dosing and efficacy outcomes from first-in-human testing. Oncology trials can require substantial funding beyond initial Phase 1 studies, creating potential future capital requirements. DEP HER2-Lu also operates within a competitive radioligand therapy sector involving larger companies with greater resources. The company's FY26 customer receipts included non-recurring income, meaning underlying Revenue generation remains limited.

Investor Takeaway

Starpharma has secured funding to progress DEP HER2-Lu into human clinical testing, with the $32 million entitlement offer expected to increase pro forma cash to approximately $44.5 million and extend the company's runway into FY28.

The next key test for Starpharma (ASX:SPL) will be first-in-human clinical execution and whether DEP HER2-Lu can demonstrate acceptable safety and early biological activity.

The program remains an early-stage oncology opportunity, with future value dependent on clinical outcomes, funding requirements and potential commercial partnerships.