Starpharma Lifts Petalion Stake to 66% for FAP Program

Starpharma (ASX:SPL) has taken majority ownership of Petalion Therapeutics so it can direct the next development phase of their fibroblast activation protein (FAP)-targeted dendrimer-drug conjugate oncology program.

Starpharma increased its equity interest in Petalion from 22.5% to 66%. Medicxi retains 30% and a Board position, and 4% remains held by Petalion advisers. Starpharma will contribute up to AUD $5.0 million, comprising AUD $3.0 million in cash and up to AUD $2.0 million in R&D services. The cash will be funded from the allocation for new R&D pipeline opportunities in Starpharma's recent capital raise, which the company says leaves sufficient funds to progress other early-stage targeted oncology assets. Starpharma will appoint two directors and its CEO, Cheryl Maley, will serve as Chair. Petalion will become a UK-incorporated subsidiary of Starpharma Holdings Limited. The next phase will focus on generating the data required to select a lead candidate and define the development and partnering pathway, with the aim of bringing an asset into the clinic.

A lead candidate has not yet been selected, and the release gives no timetable for candidate selection or for bringing an asset into the clinic.