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Pharmaxis cash funds for development of new drugs boosted by $6.2 million R&D tax incentive

Receipt of this incentive adds to the company’s cash funds, which were $31 million at 30 June 2019.

Pharmaxis Ltd - Pharmaxis cash funds for development of new drugs boosted by $6.2 million R&D tax incentive
Pharmaxis is a global leader in drug development for inflammation and fibrotic diseases

Pharmaxis Ltd (ASX:PXS) is well funded to advance drug candidates into clinical development with its cash position enhanced by receipt of a $6.2 million R&D tax incentive.

This incentive for the 2019 financial year effectively reduces Pharmaxis expenditure on research and development in that period by more than 40% and adds to the company’s cash funds which were $31 million at June 30, 2019.

Highly productive drug discovery engine

Pharmaxis CEO Gary Phillips said, “The R&D tax incentive provides significant leverage to the Pharmaxis research team’s development of new drugs for inflammation and fibrotic diseases.

“The Pharmaxis research team has taken four in-house compounds to Phase 1 trials in just five years.

“In the 2019 year alone the company completed phase 1 trials in two LOXL2 inhibitors, commenced phase 1 trials in a systemic LOX inhibitor compound and advanced a topical LOX inhibitor through preclinical development.”

FY19 R&D expenditure

In FY19 Pharmaxis incurred drug discovery employee expenses of $2.8 million and external expenditure of $8.9 million in advancing its new drug pipeline into and through phase 1 clinical trials.

Shares have been up almost 8% to an intra-day high of 21 cents.

The government’s R&D tax incentive is payable in cash on eligible R&D expenditure for companies with total revenue less than $20 million in the claim year.

Pharmaxis is an Australian pharmaceutical research company and a global leader in drug development for inflammation and fibrotic diseases.

The company has a highly productive drug discovery engine, drug candidates in clinical trials and significant future cash flows from partnering deals.

Quick facts: Pharmaxis Ltd

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ASX:PXS
Market: ASX
Market Cap: $36.11 m
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