Race Oncology Ltd (ASX:RAC) has received a A$1.48 million boost to its bottom line thanks to an FY22 research and development (R&D) tax refund.
The Australian Taxation Office splashed the cash as part of a tax incentive scheme designed to reward local industry investment.
Under the program, eligible companies can claim almost half of their R&D spend back, putting extra money in the kitty for future research and development programs.
Race also submitted an Overseas Finding claim that could pay dividends: the application could trigger another refund and qualify Race to claim on future overseas R&D activities.
While no timelines have been given, Race promises to update the market when it knows more.
Helping biotechs meet local and global need
Race managing director and CEO Damian Clarke-Bruce said: “The Australian Government’s R&D tax incentive plays an important and unique role in helping Australian companies to grow and innovate.
“This incentive is especially important in helping biotech companies such as Race to solve significant unmet medical needs for our local and global community.
“We are grateful to receive this refund and look forward to utilising it further to double down on our clinical and preclinical programs for Zantrene® in 2023 and beyond.”
Race’s Phase 2/3 cancer drug, known as Zantrene, is a potent inhibitor of the Fatso/Fat mass and obesity-associated (FTO) protein. Overexpression of FTO has been shown to be the genetic driver of a diverse range of cancers.
Race is considering ways it can use Zantrene as a new therapy for melanoma and clear cell renal cell carcinoma, which are both frequent FTO over-expressing cancers.
In breakthrough pre-clinical research, Race also discovered that Zantrene protects from anthracycline-induced heart damage, while in tandem acting with anthracyclines and proteasome inhibitors to improve their ability to target cancer.
The company has compelling clinical data for Zantrene as a chemotherapeutic agent and is in multiple clinical trials in Acute Myeloid Leukaemia (AML).