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Telix Pharmaceuticals (ASX:TLX) bags $12.1m R&D tax refund, increases overseas finding to $139m

Health Care
ASX:TLX      MCAP $5.036B
28 September 2021 08:25 (AEST)
Telix Pharmaceuticals (ASX:TLX) - CFO, Doug Cubbin

Source: Doug Cubbin/LinkedIn

Telix Pharmaceuticals (TLX) has pocketed a research and development (R&D) tax refund of $12.1 million for eligible activities undertaken in the 2020 calendar year.

Headquartered in Melbourne, TLX is a biopharmaceutical company focused on developing diagnostic and therapeutic products using molecularly targeted radiation.

On top of the tax refund, Telix said its application for an expanded overseas finding — to enable partial recovery of essential overseas R&D expenditure — had been accepted by the Department of Industry, Science, Energy and Resources.

This follows an “advance finding” received by the company in August in relation to its proposed pre-clinical, clinical, manufacturing, and regulatory-related activities.

The advance finding enabled TLX to claim a tax rebate on eligible R&D investment up to a gross amount of $55.2 million over five years.

The company says the approved expansion will allow Telix to claim a further R&D tax rebate, or deduction on eligible investment, up to around $139 million gross from the current year through to December 31, 2027.

Telix Pharmaceuticals Chief Financial Officer Doug Cubbin said the R&D tax refund was a positive for the company.

“Given the growth in the company’s pipeline, Telix sought an expansion to advance its overseas R&D tax finding, complementing our significant investment in Australian R&D,” he said.

“The Australian Federal Government’s R&D tax credit scheme is of significant value to a biotechnology company such as Telix, particularly as we transition from development to sustainable revenue stage.

“These funds enable the company to invest in innovative clinical development programs and research partnerships with leading Australian institutions.”

Despite the announcement, shares were down 0.85 per cent to $5.85 each at 1:47 pm AEST.

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