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.
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.
