- Cynata Therapeutics (CYP) has received a research and development tax incentive of more than $618,000 for the 2018-2019 financial year
- This tax refund is in addition to the $1.8 million received in January
- The extra cash enables further resources to be invested towards its clinical trial programs for osteoarthritis and graft-versus-host disease
- The company is now in discussions with international pharmaceutical companies about the potential of its stem cell technology to be used in patients with coronavirus
- This technology uses stem cells that are multipotent and can produce in different types of cells
- Shares in Cynata are up 8.67 per cent and are trading for 94 cents each
Cynata Therapeutics (CYP) has received a $618,667 research and development (R&D) tax refund for the 2018-2019 financial year.
This tax refund is in addition to the $1.8 million rebate received by the company in January this year.
A further refund follows confirmation from AusIndustry that overseas R&D expenditure related to Cynata’s Phase 2 clinical trial in critical limb ischemia (CLI) is eligible for the rebate.
This additional cash extends Cynata’s cash balance and enables further resources to be invested towards its clinical trial programs for CLI (reduced blood flow to limbs), osteoarthritis and graft-versus-host disease.
Covid-19 Update
Cynata has informed shareholders that its current Phase 2 trial plans for CLI and osteoarthritis remain on track.
The company also confirmed that it does not have any logistic or supply chain issues arising from the coronavirus Covid-19 outbreak.
Additionally, Cynata is in discussions with international pharmaceutical companies about the potential of its Cymerus MSCs to be used in the management of patients who have ongoing issues associated with Covid-19.
Covid-19 has been shown to cause conditions including acute respiratory distress syndrome, sepsis (blood poisoning) and cytokine release syndrome (rapid release of cytokines, proteins, that may cause shortness of breath, dizziness or nausea).
MSCs (mesenchymal stem cells) are adult stem cells that are found in a wide range of human tissues including bone marrow, fat tissue and placenta.
They are multipotent which means they can produce more than one type of cell; for example, they can differentiate cartilage, bone and fat cells.
The potential of MSCs for treating symptoms of Covid-19 is underpinned by clinical results in China that suggest MSCs may offer protection against serious outcomes of the infection, particularly pneumonia.
Patients with Covid-19 in China have favourably responded to treatment of MSCs in a clinical study.
Cynata now remains focused on progressing the development of Cymerus MSCs in multiple planned upcoming Phase 2 trials.
Further progress has been made for the Phase 2 trial in CLI, and Cynata is working with FUJIFILM to advance Phase 2 trial planning in graft-versus-host disease.
Shares in Cynata are up 8.67 per cent and trading for 94 cents apiece at 2:49 pm AEDT.