Dow deal sends Starpharma into orbit (By Rebecca Urban, The Age)
- Starpharma shares soared yesterday
after the nanotechnology group confirmed that it had signed a strategic
and potentially lucrative deal with The Dow Chemical Company.
Under the three-way deal, Starpharma's US-based subsidiary, Dendritic NanoTechnologies (DNT), will acquire Dow's extensive portfolio of patents covering dendrimer technology. It also gains the rights to revenue from Dow's already established licensing activities.
Starpharma shares were suspended from trading for the past week and opened yesterday at a significant premium of $1, before settling back to close at 87¢.
As The Age reported last week, Starpharma chief executive John Raff was planning to travel to the US this week to finalise the deal.
With the deal, Dow will take a significant stake in DNT, believed to be about 31 per cent, while Starpharma will invest a further $1 million in the company to ensure it remains the largest shareholder.
Other DNT shareholders include Central Michigan University and Donald Tomalia, the scientist who discovered dendrimers - a unique class of polymers - in the late 1970s when he worked for Dow. More here
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