Starpharma Share Price Retracing after New COVID-19 Product (ASX:SPL)

Today, we look at the SPL share price.

The Melbourne-based biotechnology company announced a new product recently that it hopes will help combat the global COVID-19 pandemic.

The market reacted positively to the Starpharma Holdings Ltd [ASX:SPL] announcement and pushed the share price up to trade at $1.70 yesterday. The SPL share price is retracing now, down 7.35%, trading at $1.57.

ASX SPL Share Price Chart 1 - Starpharma

Source: Optuma

What’s happening at Starpharma?

The ongoing global COVID-19 pandemic is forcing companies in every walk of life to reassess their business and future.

Starpharma is pivoting to tackle this problem head-on.

Using Starpharma’s patented DEP® technology, the company announced the creation of a slow-release soluble remdesivir nanoparticle.

Remdesivir is an antiviral drug, currently being developed by Gilead to treat COVID-19 and has emergency use authorisation from the US Food and Drug Administration for the treatment of COVID-19 in adults and children that find themselves in hospital with the disease.

So, clearly a very important project.

The benefit of DEP® remdesivir is it could potentially grow its applications outside hospitals and move into places like aged care facilities and into other countries that may not have advanced healthcare systems in place.

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Where to from here for Starpharma?

The vaccine race is on.

And so is the treatment race, of which remdesivir is part of.

A solution for the issue is greatly needed to right the ship.

Let’s take a look at the SPL share price chart:

Starpharma Share Price Chart

Source: Optuma

SPL is a rather volatile stock over the last few years, with some major swings in its past.

The SPL share price is sitting below the historical level of $1.66, which happened to be the all-time high set back in November 2018, if it can get above this and stay above, it may be a positive sign.

Should the SPL price decline, then the levels of $1.53 and $1.40 may be strong enough to halt a further fall.

Regards

Carl Wittkopp,
For Money Morning

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Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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