Starpharma (ASX: SPL), an innovative biotechnology company advancing dendrimer technology from the lab to the patient, today announced it has increased its equity interest in Petalion Therapeutics from 22.5% to 66%. This move secures majority ownership, governance control, and operational leadership of Petalion’s differentiated fibroblast activation protein (FAP)-targeted DEP® oncology program. The transaction involves Starpharma contributing up to AUD $5.0 million to Petalion, comprising AUD $3.0 million in cash and the balance in R&D services, to advance the program through its next phase.
This strategic investment integrates a promising FAP-targeted dendrimer-drug conjugate into Starpharma’s focused oncology portfolio. FAP is recognised as a compelling pan-cancer target, highly expressed in the tumour microenvironment across many solid tumours. Gaining majority ownership enables Starpharma to align development priorities, capital allocation, and partnering decisions directly with its broader DEP® strategy. Medicxi, a key strategic partner, will retain a 30% interest, Board representation, and an active strategic role, preserving valuable external development expertise.
The immediate objective for the program is to generate the crucial data required to select a lead candidate and define the optimal development and partnering pathway. Starpharma will apply its dendrimer, conjugation, and development capabilities to progress this asset. CEO Cheryl Maley commented that Petalion is strongly aligned with the company’s strategy to build a focused portfolio of differentiated targeted-oncology therapies, complementing their broader work in targeted drug delivery. The AUD $3.0 million cash component will be funded from Starpharma’s recent capital raise allocation for new R&D pipeline opportunities. Petalion will operate as a UK-incorporated subsidiary of Starpharma Holdings Limited.
