Small Times

Oct. 4, 2006 — Starpharma Holdings Limited of Melbourne, Australia, announced the signing of an agreement to acquire U.S.-based Dendritic Nanotechnologies Inc. (DNT) for $6.97 million payable through the issue of Starpharma shares.

The company says the transaction offers significant benefits to Starpharma including:

• The provision of diversified product pipeline with near-term cash-flow opportunities, and a more balanced risk profile
• An increased US presence
• The Dow Chemical Company will become a substantial shareholder in Starpharma (approximately 8.6 percent)
• Significant development, commercialization and other business synergies; and
• An extensive IP portfolio with existing royalty streams

Starpharma currently owns 33 percent of DNT and The Dow Chemical Company is the other major shareholder with a 30 percent equity stake. As a result of the transaction, DNT will become a wholly owned operating subsidiary of Starpharma Holdings Limited and remain a U.S. corporation based in Mount Pleasant, Michigan. The transaction is subject to DNT shareholder approval, which is anticipated to be obtained in the next two weeks.

“The acquisition of DNT is an extremely positive development for Starpharma” said Starpharma CEO, Jackie Fairley, in a prepared statement. “DNT has exciting new intellectual property in its Priostar dendrimers, with existing royalty streams in place from leading life-science companies. We believe that the combined entity is ideally placed to capitalize on the significant commercial opportunities for the technology. This will give Starpharma the opportunity to commercialise dendrimer technology not only in the pharmaceutical sector but also into other nearer-term life-science and industrial applications.”