Starpharma: Products, Deals and Forecasts




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Video title: Starpharma: Products, Deals and Forecasts
Released on: December 29, 2009. © PharmaVentures Ltd
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In this episode of PharmaTelevision News Review, Fintan Walton talks with Jackie Fairley, Chief Executive Officer at Starpharma.

Filmed at AusBiotech 2009, they discuss:

• Starpharma's new technology and its applications
• Starpharma's anti-viral Vivagel and its global rights
• the deal with Eli Lilly's animal health division
• Starpharma's business model
• the prospects of Starpharma taking products to market without outside help
• Starpharma's future revenue streams and the outlook for 2010
Star Pharma's new technology and its applications.
Fintan Walton:
Hello and welcome to PharmaTelevision News Review here in Melbourne, Australia. On this show I have Jackie Fairley, who is CEO of a company called Star Pharma , which is based here in Melbourne, in Australia. Welcome.
Jackie Fairly:
Thank you.
Fintan Walton:
Jackie Fairly , you've been on the show before talking about Star Pharma you're company that has a platform technology, that technology is a dendrimer-technology. Tell us little bit more about that technology, but also some of the recent success stories you've had?
Jackie Fairly:
Sure. So our technology is a particular type of synthetic macromolecule called adendrimer so a nanoscale particle if you like and it can applied against the whole range of different product categories, we have deals currently with Siemens Healthcare for its use in diagnostics. And we've recently signed some new deals for its application in drug delivery with Eli Lilly's animal health division Elanco and also part of GSK for using dermatology. It can also be applied in a range of industrial areas such as agrochemicals, chemicals and laboratory reagents. And we also have a lead product which is in clinical development as a pharmaceutical.
Star Pharma's anti-viral Vivagel and its global rights
Fintan Walton:
Okay. Then you've also done a deal with an SSL [PharmaDeals ID = 32023] which is the manufacturer of Durex, you come up with this product called VivaGel, could you tell us about VivaGel?
Jackie Fairly:
So VivaGel is a water based gel that contains one of these dendrimers that we have a proprietary molecule and in this case the molecule is an antiviral agent, so it inactivates the HIV virus, the Genital herpes virus and human papillomavirus all of which is sexually transmitted viruses and the gel itself is used to prevent the transmission of those diseases, but in the deal that we have with SSL the owners of the Durex brand it's actually being putting a lubricant and coat it on to condoms to add additional antiviral capability to those.
Fintan Walton:
So the deal that you've done with SSL is a licensing deal, is that correct?
Jackie Fairly:
That's correct. So we've licensed globally the rights to SSL to use our proprietary molecule as a coating on condoms and that will be marketed under the Durex brand which is the world leading condom brand.
Fintan Walton:
And what sort of return do you expect from that deal, what's sort of royalty have you got?
Jackie Fairly:
Well we have a the royalty itself is undisclosed. However we have announced to the market that we think that the returns to Star Pharma will be well in excess of a $100 million in fact that's, that's a pretty conservative estimate over the life of the product the patents run till 2027 so it's a long standing license deal and depending upon what proportion of the SSL range, SSLhold 42% of the global market, so it's a $1.1 billion market it's a fairly significant opportunity.
The deal with Eli Lilly's animal health division
Fintan Walton:
The deal that you've done with Elanco, which is the animal health division of Eli Lilly what, what exactly is that deal?
Jackie Fairly:
So that's a deal in which our proprietary molecules again dendrimers in this case rather than being drugs themselves as they were in the antiviral example in this case they act as a scaffold to which one can attach other drugs. So Elanco's own small molecule drugs or biological molecules can be attached to our dendrimers to modify the ways, way in which those drugs perform, so to extend the length of time they last in the body. So it's a drug delivery deal and it's a drug delivery technology.
Fintan Walton:
And under that deal do you actually do any of the research yourself do you do the actual activity or have you handed the technology over to Eli Lilly 's Elanco?
Jackie Fairly:
So it's a co-development arrangement and in fact what we do is we make on behalf of Elanco the dendrimer drug combinations, we then hand those constructs over to Elanco they then test them in their own animal models, they're responsible for all of the development activities with us providing materials to be tested of course. And then if those are taken forward as and launched as product then we receive milestones and royalties on the basis of the sales of those products.
Star Pharma's business model
Fintan Walton:
And, what in the end is your business model? I mean how ultimately are you, you know where do you really want to go with this business?
Jackie Fairly:
So as a platform technology we are really interested in as many commercially attractive applications about technology as we can, and so as those revenue streams that come through license deals like the existing deal with Siemens Healthcare or like the Durex deal to have a multitude of those revenue streams that will provide returns to our shareholders.
The prospects of Star Pharma taking products to market without outside help
Fintan Walton:
And would you ever consider taking your own drugs to market?
Jackie Fairly:
Look there might be certain circumstances in which we would take some products to market, I think it's unlikely that anything that we have in our portfolio currently we would take to market I think it's for more likely that we would partner early as we have done that's really our model is to have our technology incorporated into products that improve other people's drugs or in fact to license the VivaGel products to well recognized distributors.
Fintan Walton:
So the future revenues of Star Pharma are gonna be based on licensing deals revenues coming through on that basis not because you are going out there selling your own products?
Jackie Fairly:
I think it's unlikely that we'll sell our own products, but I guess once when has several revenue streams in place you have the greater flexibility to take those products to market.
Star Pharma's future revenue streams and the outlook for 2010.
Fintan Walton:
So what do we expect from the Star Pharma over the next 12-months?
Jackie Fairly:
Well I think you can expect some really exciting process on our condom coating product, theVivaGel we've got some really exciting results recently in human trials and I think there will more of those to come as well as further partnerships with some really leading companies in a range of different industries.
Fintan Walton:
Jackie Fairly, thank you very much indeed for coming on the show. Thank you.
Jackie Fairly:
Thank you.
Jackie Fairley
Chief Executive Officer
Jackie Fairly, BSc, BVSc (Hons), MBA Chief Executive Officer Fairley was appointed Chief Executive Officer of Star Pharma on 1 July 2006 after serving in the role of Chief Operating Officer from July 2005. As CEO and a Director of the Board, Jackie Fairly's responsibilities include involvement in setting strategic direction, oversight of operations and financing activities for the group. She also plays an active role in driving key commercial negotiations and development programs and corporate activity. Jackie Fairly has more than 20 years's experience in the pharmaceutical and biotechnology industries working in business development and senior management roles with companies including CSL and Faulding (now Hospira). Former CEO of Cerylid Biosciences, Jackie Fairly also spent 5 years as Vice President for Faulding's injectable division and 5 years with CSL in various executive roles. She holds first class honours degrees in Science (pharmacology/pathology) and Veterinary Science, and has an MBA from the Melbourne Business School where she was the recipient of the Clemenger Medal.
Starpharma
Star Pharma is a world leader in the development of nanotechnology-based pharmaceuticals and, through its US-based subsidiary Dendritic Nanotechnologies (DNT) , a range of life-science and industrial uses.