- 01Starpharma lifts Petalion stake to 66%, gaining control.
- 02Up to $5m funds FAP-targeted cancer R&D.
- 03Medicxi retains 30%; program uses Starpharma’s DEP platform.
Starpharma (ASX: SPL) has boosted its equity interest in UK-based Petalion Therapeutics to secure majority ownership, governance control, and operational leadership of Petalion’s fibroblast activation protein (FAP)-targeted dendrimer-enhanced product (DEP) oncology program.
Starpharma and life sciences investment firm Medicxi are joint venture partners in Petalion, which was founded in 2024 to develop novel targeted dendrimer drug conjugates for cancer treatment.
Starpharma’s move will see its equity increase from 22.5% to 66%, enabling development priorities, capital allocation, and partnering decisions to be aligned with its broader DEP strategy.
Petalion will become a UK-incorporated subsidiary of Starpharma Holdings, with Medicxi retaining a 30% stake and the remaining 4% held by Petalion advisers.
Majority Stake Consideration
Under the terms of the transaction, Starpharma will contribute up to $5 million to Petalion, comprising $3m in cash funded from a recent capital raise and $2m in services to advance Petalion’s FAP-targeted DEP program through initial research and development.
On completion of this stage, Starpharma will apply its dendrimer, conjugation, and development capabilities to generate the evidence required for lead candidate selection and define the program’s commercialisation and partnering pathway.
Starpharma will appoint two directors to the Petalion board, with Medicxi retaining one board position and Starpharma chief executive officer Cheryl Maley serving as chair.
Under the revised structure, Starpharma will lead operations while Medicxi will continue to provide strategic, oncology development, investment and asset-centric expertise, and specialist advisers will be engaged as required.
Ms Maley said the move to majority ownership would enable Starpharma to integrate the FAP-targeted program more closely into its oncology portfolio and direct the next phase with “clear development and capital allocation priorities”.
Pan-Cancer Target
Fibroblast activation protein is highly expressed in the micro-environment of many solid tumours, with relatively limited expression in healthy tissue, making it a compelling pan-cancer target with potential relevance across pancreatic, lung and breast cancers.
Effective FAP-targeted therapies require an appropriate balance of tumour penetration, distribution and retention, together with delivery of a therapeutic payload capable of producing meaningful tumour cell killing and patient benefit.
Starpharma’s tuneable DEP dendrimer platform is designed to optimise tumour localisation, penetration, retention and payload delivery while limiting unnecessary exposure to healthy tissue and Petalion has applied this approach in a FAP-targeted dendrimer-drug conjugate.
Starpharma expects its research capability and capital deployment—together with Medicxi’s retained ownership, board representation, and strategic input—to provide a balanced structure for advancing the program and evaluating future investment decisions.
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