Neurotech Boosts Cash Reserves with $2.44M R&D Tax Refund
Neurotech International has secured a $2.44 million R&D tax incentive refund, strengthening its cash position as it advances clinical trials for paediatric neurological disorders and prepares for regulatory submissions in FY2025.
- Received $2.44 million R&D tax incentive refund for FY24
- Cash and equivalents total $6.0 million as of December 31, 2024
- Pro-forma cash position stands at $8.44 million post-refund
- Ongoing Phase II/III clinical trials in Autism Spectrum Disorder and other paediatric neurological conditions
- Preparing for regulatory submissions with TGA and FDA in FY2025
Neurotech Secures Significant R&D Tax Incentive Refund
Neurotech International Limited (ASX: NTI), a clinical-stage biopharmaceutical company specialising in paediatric neurological disorders, has received a $2.44 million research and development (R&D) tax incentive refund for the financial year ended June 30, 2024. This refund, granted under the Australian Federal Government's R&D Tax Incentive scheme, reflects the company's sustained investment in innovative clinical trials.
The refund arrives at a pivotal time for Neurotech, which reported cash and cash equivalents of $6.0 million as of December 31, 2024. With the addition of the tax incentive, the company's pro-forma cash position improves to $8.44 million, providing a stronger financial footing as it accelerates its clinical development programs.
Advancing Clinical Trials and Regulatory Preparations
Neurotech has made notable progress in its clinical pipeline, including a completed Phase I/II trial in Autism Spectrum Disorder (ASD) that demonstrated promising safety and efficacy results. The company is currently conducting a Phase II/III randomised, double-blind, placebo-controlled trial in ASD, alongside Phase I/II trials targeting Paediatric Autoimmune Neuropsychiatric Disorders Associated with Streptococcal Infections (PANDAS), Paediatric Acute-Onset Neuropsychiatric Syndrome (PANS), and Rett Syndrome.
Executive Director Dr Thomas Duthy emphasised the importance of the refund, stating it bolsters Neurotech’s capacity to complete critical animal toxicology and human pharmacokinetic studies. These studies are essential precursors to preparing regulatory submissions with both the Australian Therapeutic Goods Administration (TGA) and the US Food and Drug Administration (FDA) planned for FY2025.
Commercialising Innovative Therapies
Beyond clinical trials, Neurotech is also commercialising Mente, the world’s first home therapy clinically proven to enhance engagement and relaxation in autistic children exhibiting elevated Delta brain wave activity. This product underscores the company’s commitment to delivering tangible benefits to patients while advancing its broader therapeutic pipeline.
The Australian Government’s R&D Tax Incentive scheme plays a crucial role in supporting companies like Neurotech by offsetting some of the costs associated with research and development, thereby fostering innovation and growth within the biotechnology sector.
As Neurotech moves forward, the strengthened cash position and ongoing clinical progress position the company well to navigate the complex regulatory landscape and bring new therapies to market.
Bottom Line?
Neurotech’s strengthened cash reserves set the stage for critical regulatory milestones in FY2025.
Questions in the middle?
- How will upcoming regulatory submissions with the TGA and FDA impact Neurotech’s valuation?
- What are the timelines and potential risks associated with completing animal toxicology and pharmacokinetic studies?
- How might the commercial rollout of Mente influence Neurotech’s revenue trajectory in the near term?
