Medlab Clinical has been granted a tax break by AusIndustry for development of its lead non-opioid pain-relief candidate NanaBis, including forthcoming global Phase III trials.

Total expenditure for NanaBis development in Australia and overseas for the three-year period is expected to be around A$27 million and the company said the award will significantly extend its cash runway and overall financial performance.

Medlab Clinical CEO Dr Sean Hall

The ‘Advance and Overseas Finding’ is a component of the federal government’s R&D tax incentive program.

CEO Dr Sean Hall said: “This outcome will directly support the company’s go-forward program for NanaBis with a 43.5% cash rebate expected on the overseas expenditure.”

He added the award allows Medlab to “de-risk the financial commitment associated with these last stages of development”.

Meanwhile, Medlab has reported a cash position of A$9.75 million as at September 30, 2021, with its coffers expected to be boosted by around $5 million in November when proceeds from the sale of its Australia-only nutraceuticals business to PharmaCare and R&D grants land.

Due diligence has been completed on the sale and the transaction is expected to complete on November 1, 2021 for approximately $1.6M and a further $500k or 5% of net sales (whichever is greater) in two future earn-out instalments.

The company said the move will save it around $2 million in operational costs and better align its focus on areas of strategic growth.

Prior to launching Cannabiz, Martin was co-founder and CEO of Asia-Pac’s leading B2B media and marketing information brand Mumbrella, overseeing its sale to Diversified Communications in 2017. A journalist...