Australian drug development company Invion Limited (ASX:IVX) is pleased to advise that its R&D tax incentive cash rebate of approximately $2.22 million has been received. This brings the company’s cash position to approximately AUD$4.7 million (unaudited).
The claimed tax credit results in a cash refund of up to 45 cents of each dollar of eligible R&D spend for local R&D activities carried out in the financial year ending 30 June 2012.
Under the R&D Tax Incentive scheme administered by AusIndustry, companies may also seek a tax rebate for R&D activities carried out overseas. Whilst the majority of the company’s activities have been conducted locally, Invion is seeking to maximise the potential benefit from the scheme and is pursuing a rebate application for certain specialist R&D activities that were undertaken outside Australia during the 2012 financial year.
The additional cash reserves will be used to support the progression of the company’s clinical and business plans for the development of drug candidates INV102 and Cpn10. This does not include the US$4.4 million phase II trial of INV102 in asthma patients which is funded by the US National Institutes of Health (NIH).