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PharmAust (ASX:PAA) receives $654k R&D tax refund

ASX News, Health Care
ASX:PAA
12 December 2022 09:12 (AEDT)
PharmAust (ASX:PAA) - PharmAust Finance Director, Sam Wright

Source: PharmAust

Biotech company PharmAust (PAA) has received a $654,109 research and development tax refund from the Australian government.

PharmAust said the refund was a reflection of the “innovation” of the research and development of PAA’s wholly owned subsidiaries Epichem and Pitney Pharmaceuticals, as recognised by the Australian government.

The company applied for the refund through the Research and Development Tax Incentive (RDTI) scheme, with the money deemed refundable on PharmAust’s 2022 tax return.

Of the funds received, $229,400 will be used to repay Radium Capital, while the remaining $424,709 will be banked by PharmAust.

“We appreciate the continued support and acknowledgement by the Australian Government for the critical work undertaken in our R&D programs,” said PharmAust Finance Director, Sam Wright.

“The receipt of the R&D refund strengthens PharmAust’s financial position to execute on our upcoming clinical trials.”

The RDTI scheme sees eligible companies receive up to a 43.5 per ce,nt refundable tax offset for expenses on research and development and is run jointly by the ATO and AusIndustry.

PAA shares last traded at 6.9 cents at 4:40 pm AEDT.

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