The company has advised that the funds will be reinvested in R&D activities and to support its global Phase 3 and Phase 2 clinical programs.
Paradigm Biopharmaceuticals’ R&D offset refund is one of the larger R&D tax offsets reported, alongside the likes of Telix Pharmaceuticals’ R&D tax offset refund of $12.1M for activity undertaken during the year ended 31 December 2020.
Receipt of refundable R&D tax offsets of this magnitude reduces the need for a company to raise additional capital to complete trials, and makes pathway to commercialisation exponentially easier.
In an environment of rising interest rates and lower tech share prices, it becomes more difficult for start up companies to raise capital. The R&D Tax Incentive becomes an even more important source of funding for such companies in these times.
Visit our news page for more recent R&D Tax Incentive developments.