Arovella Therapeutics Ltd (ASX:ALA) has strengthened the cash position used to develop its invariant Natural Killer T (iNKT) cell therapy platform on receiving an R&D Tax Incentive rebate of $1.94 million.
The refund from the Australian Tax Office for the company’s FY2023 research and development (R&D) expenditure forms part of an Australian Federal Government R&D Tax Incentive program.
These funds boost the company’s cash position which stood at $5.3 million at September 30, 2023.
“Valuable support”
The R&D rebate comes as Arovella progresses development of its lead asset, ALA-101, towards first-in-human clinical trials.
CEO and managing director Dr Michael Baker said: “The R&D Tax Incentive scheme provides valuable support for companies such as Arovella and we look forward to using these funds to advance our programs towards the clinic.”
Arovella’s rebate comes on the back of a new report commissioned by AusBiotech that sheds light on the substantial economic impact of the R&D Tax Incentive on the Australian biotechnology sector.
READ: Report reveals economic boost from R&D tax incentive for Australian biotech industry
The report, titled 'Economic impact of the Research and Development Tax Incentive (RDTI) for the biotech industry', was unveiled at the AusBiotech 2023 conference in Brisbane.
It highlights the pivotal role of government policies in fostering long-term growth and innovation in the biotech industry.
Over the span of a decade, from 2011 to 2021, the RDTI program yielded strong results, generating an average return of $2.18 for every dollar of tax revenue spent. By 2021, this figure had risen to an even more impressive $3.14, showcasing the compounding benefits of sustained policy support.