Melbourne-based Immuron (ASX:IMC) has reported a a cash refund of $1.6 million under the R&D Tax Inventive program for last financial year.
The refund reflects the company's $3.6 company investment in R&D during the year to support development of its pipeline programs, including IMM-124E in NASH and ASH, IMM-529 in C. difficile, as well as the continuous development of its existing Travelan/Protectyn programs.
According to CEO Mr Thomas Liquard, “We are grateful that the Australian Government is such a strong supporter of the development of early-stage biotechnology companies through the R&D Tax Concession initiative scheme. This cash refund scheme has allowed Immuron the opportunity to accelerate the clinical development timelines for a number of its high-value pipeline programs.”
A review of the popular R&D Tax Incentive program has recommended a series of reforms, some of which have raised significant concerns across the biotech sector.
Of particular concern is the recommendation for a $2 million annual cap on cash claims under the program, with the remaining share treated as a non-refundable tax offset carried forward for use against future taxable income.
AusBiotech says the proposed cap will be particularly negative for small and medium size companies and ultimately seriously damage clinical trials activity in Australia.