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.