Chimeric Secures $2.5M Advance Against FY25 R&D Tax Incentive Refund
Chimeric Therapeutics has secured a $2.5 million advance against its FY25 R&D tax incentive, bolstering funding for its clinical trial pipeline and operational needs. This move complements recent capital raises and underscores the company’s strategic financial management amid its oncology-focused cell therapy development.
- Secured $2.5 million advance from Endpoints Capital
- Funding backed by anticipated FY25 R&D Tax Incentive refund
- Supports clinical trial pipeline and general working capital
- Follows recent $6.6 million placement and $1 million entitlement offer
- Repayment scheduled post-RDTI receipt by December 2025
Strategic Funding Boost
Chimeric Therapeutics, a clinical-stage leader in cell therapy, has obtained a $2.5 million advance from Endpoints Capital, secured against its anticipated FY25 Research and Development Tax Incentive (RDTI). This funding facility provides the company with early access to government-backed funds, enabling it to accelerate its clinical trial programs and maintain operational momentum.
The RDTI program, administered by the Australian Taxation Office, offers a refundable tax offset to companies engaged in eligible research activities. By leveraging this incentive through a secured funding arrangement, Chimeric gains liquidity without immediate dilution or equity issuance, a strategic move in a capital-intensive biotech sector.
Complementing Recent Capital Raises
This advance complements Chimeric’s recent capital initiatives, including a $6.6 million placement and a $1 million entitlement offer, alongside $4 million in non-dilutive funding. Together, these efforts reinforce the company’s financial position as it progresses multiple clinical-stage programs targeting oncology indications.
Chimeric’s diversified portfolio includes innovative therapies such as the CDH17 CAR T cell therapy, currently in phase 1/2 trials for gastrointestinal and neuroendocrine tumors, and the CLTX CAR T therapy for glioblastoma, which recently reported encouraging preliminary data. Additionally, the CORE-NK platform is advancing natural killer cell therapies with demonstrated safety and efficacy in early trials.
Implications for Clinical Development
Access to this advance funding is critical for sustaining the momentum of Chimeric’s clinical programs, which require substantial investment to navigate complex regulatory and development pathways. The facility’s repayment is aligned with the expected receipt of the FY25 RDTI refund by the end of the calendar year, providing a clear timeline for financial planning.
Endpoints Capital, the financier behind the facility, specialises in R&D funding solutions for biotech firms, reflecting a growing trend of leveraging government incentives to bridge funding gaps in innovative life sciences ventures.
Looking Ahead
Chimeric’s ability to secure this funding without immediate equity dilution signals confidence in its pipeline and financial stewardship. As the company advances its promising cell therapy candidates, this capital injection will be pivotal in supporting ongoing trials and potentially accelerating timelines toward commercialization.
Bottom Line?
Chimeric’s strategic use of R&D tax incentive financing strengthens its runway as it pushes forward in the competitive cell therapy landscape.
Questions in the middle?
- How will the timing and amount of the final RDTI refund impact Chimeric’s cash flow?
- What upcoming clinical milestones could influence further capital needs or partnerships?
- Could this funding approach set a precedent for other ASX-listed biotech firms?
