Opthea (ASX:OPT) has confirmed it has received an R&D Tax Incentive refund of $2.64 million relating to expenditure in the financial year ended 30 June 2016.
The R&D tax refund relates to both Australian and eligible overseas expenditure, mainly on the development of its lead molecule OPT-302.
It follows recent approval from AusIndustry of its application for an Advance/Overseas Finding. Under the Advance Finding, Opthea’s projected research and development activities in both Australia and overseas will be eligible for the R&D Tax Incentive for a period of three years to June 30 2018.
According to Opthea CEO and managing director, Dr Megan Baldwin, “The receipt of $2.6M represents a significant increase in our resources as we advance OPT-302 through a Phase 2A clinical trial for the treatment of wet AMD and plan to commence a larger, randomized controlled Phase 2B clinical trial in wet AMD patients in 2017."
The Turnbull government recently secured parliamentary support for a cut in the rate of the R&D Tax Incentive and is considering the recommendations of a review into the popular program.
Amongst a raft of proposed changes, the review recommended a $2 million annual cap on cash claims under the program. AusBiotech is leading a push against the change, arguing it would disadvantage a significant proportion of small to medium size enterprises.