Prana Biotechnology announced that it has received a $6.8 million cash refund under the Government’s R&D Tax Incentive Scheme.
The refund relates to the cost of eligible research and development activities conducted during the 2014 financial year.
"These funds will be used to further the company's development of PBT2 for the treatment of Huntington’s Disease," the company said in a statement.
Prana recently announced that the European Commission has approved orphan designation for PBT2 for the treatment of Huntington’s disease.
Orphan designation provides for ten years of market exclusivity in the European Union from the granting of a marketing authorisation. Other benefits relate to assistance in developing clinical protocols, reduced fees, and access to EU-funded research grants.
Last year the company announced positive findings in its Phase 2 clinical trial for Huntington’s disease and is planning for further clinical trials. The company has Orphan Drug designation with the US FDA.
The Abbott Government is in the process of making its second attempt at securing political support for a proposed 1.5 per cent cut in the R&D Tax Incentive.
Under the proposed change, the 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.
Labor and the Greens say they remain committed to opposing the cut, which follows other cent changes to the incentive, including a cap on claims.