Pharmaxis reports R&D Tax Incentive payment

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Sydney-based Pharmaxis (ASX:PXS) says it has received a $6.2 million R&D tax incentive payment in relation to the 2019 financial year.

The company said it adds to its cash funds, which stood at $31 million at 30 June 2019, and that the incentive "effectively reduces" its 2019 expenditure onR&D by more than 40 per cent.

“The R&D tax incentive provides significant leverage to the Pharmaxis research team’s development of new drugs for inflammation and fibrotic diseases," said CEO Gary Phillips.

"The Pharmaxis research team has taken four in‐house compounds to Phase 1 trials in just five years and in the 2019 year alone completed phase 1 trials in two LOXL2 inhibitors, commenced phase 1 trials in a systemic LOX inhibitor compound and advanced a topical LOX inhibitor through preclinical development.”

Pharmaxis said it in 2019 it incurred drug discovery employee expenses of $2.8 million and external expenditure of $8.9 million.