Starpharma banks $3.4m from R&D Tax Incentive

Company News

A $3.4 million R&D Tax Incentive refund for Starpharma (ASX:SPL) relating to FY15 expenditures.

The company said the refund relates to Australian R&D expenditure on VivaGel, DEP docetaxel and agrochemical programs, as well as eligible overseas expenditure for Starpharma’s DEP docetaxel clinical program.

According to CEO Dr Jackie Fairley, “The R&D tax incentive is an important program and provides a significant incentive to Starpharma in researching, developing and advancing commercially attractive innovative products.

“In addition to more advanced products such as VivaGel, the R&D tax incentive has provided important support to the development of Starpharma’s DEP platform. The DEP platform has yielded valuable product opportunities including DEP docetaxel and underpins the major deal with AstraZeneca as well as other high potential internal programs, such as the recently highlighted targeted DEPTM program.”

The company's recently signed deal with AstraZeneca could be worth as much as half a billion dollars.

The agreement covers the development and commercialisation by AstraZeneca of compounds directed at a defined family of targets using Starpharma’s DEP drug delivery technology.

Starpharma is eligible to receive signature and milestone payments on one or more AstraZeneca DEP products if they progress through the development pipeline, and milestone and royalty payments on any net sales of the resultant products.