Starpharma is also in an enviable position, holding broad-based patents on various dendrimer applications.

FORBES: New Nano Protection Against HIV And Herpes

The NIAID is funding these trials directly, rather than giving the cash to Starpharma as a grant.

FORBES: New Nano Protection Against HIV And Herpes

Don't expect cash flow until the end of 2008, when Starpharma expects to have VivaGel on the market.

FORBES: New Nano Protection Against HIV And Herpes

Starpharma's relationship with DNT links it into a much larger intellectual property space, as Tomalia retains many dendrimer-related patents.

FORBES: New Nano Protection Against HIV And Herpes

All of this government support means that Starpharma's spending is at a minimum.

FORBES: New Nano Protection Against HIV And Herpes

Starpharma holds 33% equity in the U.S.-based privately--held Dendritic Nanotechnologies Inc. (DNT), which Raff, who is a molecular biologist, co-founded with chemist Donald Tomalia.

FORBES: New Nano Protection Against HIV And Herpes

The challenge for Starpharma will be to limit its ownership dilution as it partners with other major drug companies that it needs to get to the next level.

FORBES: New Nano Protection Against HIV And Herpes

Earlier this month, Starpharma announced that animal studies at Johns Hopkins University showed that besides preventing HIV and genital herpes, VivaGel may be a potent contraceptive as well.

FORBES: New Nano Protection Against HIV And Herpes

Starpharma began trading in America as an ADR level 1 sponsored by the Bank of New York (nyse: BK - news - people ) in January 2005.

FORBES: New Nano Protection Against HIV And Herpes

Starpharma, of course, retains full commercial rights.

FORBES: New Nano Protection Against HIV And Herpes