The biotech company, Factor Therapeutics Limited (ASX: FTT) receives the tax incentive refund with respect to the eligible Research and Development expenditures incurred during the year 2018.
In today’s announcement to Australian Securities Exchange, Factor Therapeutics Limited announced that it has received $2.488 million R&D tax rebate for eligible Research and Development activities, primarily in relation to the Phase 2 clinical trial of VF001 conducted in the United States during the financial year ended 31 December 2018.
The Group incurred approximately $5.7 million towards the eligible research and development expenditure. This underscores the group’s primary expense areas that includes costs associated with clinical trials, non-clinical activities such as regulatory and medical activities, and research-related overhead expenses.
Factor Therapeutics’ lead product, VF001, was an advanced biologic product for wound care that utilised a targeted growth factor approach to improve wound healing. While the platform technology on which VF001 is based had multiple potential clinical applications, it was initially being developed for a type of chronic wound known as venous leg ulcers (VLU).
During the financial year ended 31 December 2018, the Factor’s primary focus was on completing recruitment and readout from VF00102, its Phase 2b clinical trial of VF001 for the treatment of venous leg ulcers. As per the company’s information, the trial did not meet its endpoints and no clinically meaningful or statistically significant improvement in wound healing was seen with VF001 treatment added to standard care compared with placebo added to standard care.
Following this outcome, further development of VF001 in wound healing was halted in November and the company redirected its core activities to the reduction of operations and preservation of cash resources as well as seeking to identify new opportunities.
To date, the company has identified 14 potential opportunities evaluated on the basis of the scientific-technical rationale for the technology, market share, product positioning, market channels and financial positions among others. In the release dated 20 March 2019, the Group revealed that it has identified two such potential opportunities which are considered to be strongest with potential cancer treatments.
As per the company’s information, Factor’s Board of Directors is targeting to complete all technical due diligence by the end of April 2019. Following a satisfactory outcome to technical due diligence, the Board will reportedly seek to enter into further negotiations on financial terms, including the potential to raise any necessary capital.
The Group recently raised $417,000 funds via a private placement offer which it intends to utilise for the working capital to assesses new opportunities in healthcare and biotechnology following the cessation of its VF001 clinical program in November 2018.
FTT stock price is trading near to its 52-week low levels, i.e. $0.002. In today’s trading session, the stock plunged as much as 25% to last trade at $0.003 on 22 March 2019. Over the past 12 months, the stock declined by 90.48% despite the upside momentum of 33.33% recorded last month.
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