Starpharma shares have rocketed after the company announced a drug delivery system deal with global biotech AstraZeneca.
At 1038 AEST, following the announcement, Starpharma shares were 16 cents, or 26.23 per cent higher at 77 cents.
Under the agreement, AstraZeneca will develop and commercialise Starpharma's drug delivery system for the treatment for tumours.
Starpharma will receive an initial payment of $US2 million ($A2.89 million) with further payments of up to $US124 million.
Starpharma chief executive Dr Jackie Fairley said the "exciting" announcement demonstrates the strong commercial potential of the company's drug delivery systems.
"We estimate that each qualifying product successfully commercialised under this agreement could be worth, over its life, around $US450 million to Starpharma ..., " Dr Fairley said.
Starpharma's drug delivery systems are used to improve the performance of pharmaceuticals, by modifying them to, among other factors, reduce toxicity.
The local biotech is also involved in a lucrative deal with gloves and condoms company Ansell for a revolutionary condom that attacks sexually transmitted viruses.
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