Mesoblast (ASX:MSB; OTC:MBLTY) has announced that it has received $5.8 million from the Government under the R&D Tax Incentive.
Mesoblast is developing a range of products related to its proprietary cell-based and protein technologies.
It recently announced an agreement under which US-based Celgene will acquire 15.3 million shares in the company, representing a 4.5 per cent stake, and a six-month right of first refusal to its adult stem cell products in the treatment of certain diseases.
Mesoblast said it anticipates that it will continue to receive funds under the R&D Tax Incentive for ongoing activities undertaken during the current financial year, including for development of its next generation cell-based product candidates.
The Abbott Government has confirmed plans to cut the R&D Tax Incentive by 1.5 per cent.
Under the proposed change, the R&D Tax Incentive will be reduced to 43.5 per cent for eligible entities with annual turnover under $20 million and 38.5 per cent for all other eligible entities.
Parliamentary support for the cut appears unlikely, with Labor and the Greens confirming their ongoing opposition.
The company also announced that results from its Phase 2 trial in patients with diabetic nephropathy showed that a single infusion of its intravenously delivered allogenic mesenchymal precursor cell product candidate MPC-300-IV was safe, reduced damaging inflammation, and preserved or improved renal function over at least 24 weeks.