Paradigm Biopharmaceuticals Ltd (ASX: PAR) has received R&D tax incentive refund from the Australian Government on November 15, 2018, i.e. today.
The company has received a R&D tax incentive refund of $2.32m. The refund from the Aussie authorities has given a further boost to its mission to make available the high quality, chronic pain medicines and treatments to the markets of Australia and the US.
The R&D tax incentives are designed by the Australian Government with a view to help the new and upcoming pharmaceutical developers in easing the cost on their operational activities and increasing their investments in various R&D programs that helps in numerous experiments, research and new discovery that will ultimately benefit the community.
In order to achieve this, a refundable tax offset of approximately 45.5% for all eligible R&D activities has been introduced by the Australian Legislation.
With its ongoing developments of the injectable Pentosan Polysulfate Sodium (iPPS) drug that is used for the treatment of the most common type of arthritis which causes severe pain in stiff joints, commonly known as osteoarthritis, Paradigm was successful in submitting its application to receive the tax rebate. The injectable PPS has not been registered in Australia till date but has received green signal from four out of seven global pharmaceutical markets. In Europe, it is registered under an antithrombotic agent, while in Australia, the drug is available as part of the TGA’s SAS category B scheme which allows its usage under strict guidance and supervision of qualified doctor. The benefits provided by iPPS drug have been witnessed and praised by several professional AFL players and more than 100 patients who have used it.
iPPS is all set to enter in the US market by next year.
By receiving tax incentive at this phase of its development signals, PAR will be able to strengthen its capital reserves and fund its necessary regulatory filings with the US FDA and the Australian TGA.
Results from the Phase2b trials are expected to come in few weeks' time.
CEO of Paradigm Biopharmaceuticals, Mr. Paul said that this tax refund receipt is well on time with release of the Phase2b osteoarthritis placebo-controlled, multicenter, double blind and randomized clinical trial results conducted on 110 patients expected in coming weeks. He further said that the data analysis, quality control and the preparation of the documents for the regulatory submission in 2019 are in process for the Phase 2b osteoarthritis clinical trial and has mentioned that clinical trial is going-on with the targeted timeline as scheduled and within the planned budget. The clinical trial’s results are expected by late December 2018 which will bring significant change for the company growth. He further said, strong cash position of the company will not only help it to accelerate its osteoarthritis program and regulatory procedures, but will also add up to other value-added developments.
With the release of this news, Paradigm shares were down by 3.9% on November 15, 2018 and traded at $0.86.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.