Nyrada Received $1M R&D Tax Rebate, Funded to Sustain Operations Through 2021

  • Jul 31, 2020 AEST
  • Team Kalkine
Nyrada Received $1M R&D Tax Rebate, Funded to Sustain Operations Through 2021

Summary

  • Nyrada’s strong cash position is further bolstered by the latest tax incentive worth $1 million received from the Australian Federal Government’s R&D tax incentive program. 
  • Based on current forecasts, Nyrada has adequate cash to sustain operations and R&D activities until the end of 2021.
  • The lucrative market potential to fulfil certain unmet clinal needs via its lead products enhances the increasing commercial value of its brain injury and cholesterol-lowering programs.

ASX-listed preclinical stage, drug discovery and development company Nyrada Inc. (ASX: NYR),   that specialises in novel small molecule drugs and is backed by an international calibre team of experts, appears to be accomplishing significant milestones. The research and development activities of Nyrada focus on the development of treatments for lowering LDL “bad” cholesterol, brain injury (Stroke and Traumatic Brain Injury), and inflammatory/autoimmune diseases.  

The latest $1 million cash rebate received from the Australian Federal Government’s Research & Development (R&D) tax incentive program for the 2018/18 financial year has further bolstered the financial stability of the Company.

The strong cash position of Nyrada offers a solid setting for carrying forth its drug development programs aimed at addressing unmet therapeutic needs. As previously outlined in the June 2020 Quarterly Activities Report & Appendix 4C lodged with the ASX on 22 July 2020, Nyrada reported $5.1 million in cash as at 30 June 2020, excluding this rebate. 

ALSO READ: Nyrada Announces Milestone Achieved in Brain Injury Program; Strong Leadership Fostering Success Story 

Tax Rebate Significance

Nyrada’s drug development initiatives have received an additional boost with the receipt of cash rebate regarding expenditure incurred on eligible R&D activities conducted during the 2018/2019 financial year.

The tax incentive broadly relates to Nyrada’s preclinical work for its brain injury and cholesterol-lowering programs. 

Based on current forecasts, Nyrada has adequate cash to sustain operations and R&D activities until the end of 2021. Nyrada will apply the funds received from the R&D Tax Incentive program to advance its preclinical programs.

ALSO READ: Nyrada Quarterly Update Highlights Key Program Developments, Strong Cash Position

Meanwhile, the Company anticipates receiving a rebate for the 2019/2020 financial year during the quarter ending 31 December 2020.

A summary of the expenditure for the period ending 30 June 2020 compared with the proposed use of funds in Year 1 is outlined below:

Business Model and Strategy

Innovative treatments and strong patent protection characterise the business model of Nyrada, targeted early commercialisation of market prospects via its first-in-class or best-in-class drug development. Nyrada is advancing well to attain its near-term milestones via leveraging its diverse product pipeline having significant therapeutic and commercial potential.

Significantly, the Cholesterol-lowering program is developing a small molecule “pill form” PCSK9 inhibitor drug intended to help up to 70 percent of patients at risk of cardiovascular disease who taking statin drugs but are still unable to achieve their target LDL-C level. The market for the two approved injectable monoclonal PCSK9 antibody inhibitor drugs, Repatha® and Praluent®, was USD 900 million in 2019 and is growing fast in a cholesterol management market worth USD 19 billion. Meanwhile, the Brain injury drug Nyrada is developing is aimed to cater to 2.8 million traumatic brain injury patients and 800,000 people suffering a stroke each year in the US.

Accomplishments

Nyrada, adopting a strategically focussed business model, appears to be on the right track concerning the latest developments. In its lead Cholesterol-lowering Program, encouraging preclinical results for its lead compound NYX-PCSK9i has demonstrated equivalency to the two FDA approved monoclonal PCSK9 antibody drugs Repatha® and Praluent®. 

ALSO READ: Nyrada Cholesterol-Lowering Drug Achieves Encouraging Preclinical Results, Stock Responds Positively

At the same time, the Brain Injury Program also showcased accelerated pace of development, with its candidate compounds, NYX-242 and NYX-1010, readily crossing the blood brain barrier for achieving concentrations that were maintained at therapeutic levels in the brain in a rat PK study. Moreover, Nyrada Brain Injury Data was published by the United States (US) Military Health System Research Symposium (MHSRS)

ALSO READ: Nyrada’s Brain Injury Drug Candidates Delivered via Preferred Administration Route

As on 31 July 2020, NYR stock traded at $0.190 (11:15 AM AEST). Notably, the stock has generated a return of 8.57% over last one month.

 


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