Imugene Ltd (ASX:IMU, OTC:IUGNF) has boosted its financial position after receiving an A$11.7 million research and development (R&D) tax refund from the Australian Taxation Office for the 2023 financial year, which includes interest of A$514,093.
The refund totalling A$11,689,963 is received as part of the Australian Government’s R&D tax incentive, which provides companies engaging in appropriate and eligible activities with a refundable tax offset of up to 43.5%.
Imugene will utilise the R&D refund to further the clinical development of its immuno-oncology pipeline.
Well-positioned
The company is well positioned to advance its strategy including ongoing trials for azer-cel, onCARlytics and VAXINIA programs, and last month announced it is raising up to A$46 million via the issue of convertible notes and warrants to CVI Investments, Inc.
READ: Imugene receives substantial capital injection; extends cash runway to end of 2025 in support of ongoing trials
The issuance involves A$20 million of senior, unsecured, zero-coupon, convertible notes and up to a further A$26 million through the issue of unlisted warrants.
This extends the company’s cash runway to the end of 2025, excluding any additional funds from warrant exercise.
“This funding reinforces our ability to advance Imugene’s range of highly prospective drugs and technologies further through the clinic,” Imugene CEO Leslie Chong said.
“With promising progress across the pipeline, attracting this investment underscores the confidence in our approach and affirms our growth potential.
“We’re very pleased to lock in this upfront funding, which also avoids some of the pitfalls of other convertible notes such as interest and security.”
READ: Imugene doses first Australian patient in Phase 1b azer-cel clinical trial
Azer-cel clinical trial
Earlier this month the company launched a Phase 1b clinical trial at the Royal Prince Alfred Hospital in Sydney, dosing the first Australian patient with its allogeneic CAR T-cell therapy azer-cel (azercabtagene zapreleucel) treatment.
The trial will focus on patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL), one of the most challenging and aggressive forms of non-Hodgkin’s lymphoma.
Azer-cel offers an off-the-shelf alternative to traditional autologous CAR T-cell therapies, which require lengthy manufacturing processes involving a patient’s own cells, reducing both treatment timelines and cost.
“Achieving first patient dosed for azer-cel in Australia represents a significant milestone for Imugene and for Australian patients battling this devastating disease,” Chong said.
“The trial’s opening at RPAH in Sydney reflects our commitment to accelerating the development of innovative, off-the-shelf immunotherapies that have the potential to improve outcomes for patients with relapsed or refractory DLBCL.
“We are proud to bring this trial to Australia and look forward to expanding recruitment across multiple sites.”