Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) has welcomed a further refund of A$2,624,860 in tax rebates under the Research and Development (R&D) Tax Incentive from the Australian Tax Office for the financial year ending June 30, 2023.
This refund concerns R&D activities undertaken by RCE overseas and is provided to the company in cash, without caveat.
The company previously received A$2.3 million in tax rebates for its Australia-based R&D activities, with this latest overseas-related rebate bringing rebates to a close for the 2023 financial year.
Ongoing support from government
Recce Pharmaceuticals' CEO James Graham expressed gratitude for the ongoing support and recognition from the Australian Government regarding their vital work in Infectious Disease programs.
He noted, "This non-dilutive funding greatly supports our cashflow requirements not only locally in Australia but extended to our activities anywhere overseas and we thank the Australian Government for their ongoing support.”
The Research and Development (R&D) Tax Incentive is designed to encourage R&D activities in Australia, encouraging greater efforts in R&D and incentivising smaller companies to undertake it, with better, more predictable support.
Under the Incentive, Recce can recapture costs from 43.5% of the company’s R&D applicable activities, undertaken anywhere in the world.
Read: Recce Pharmaceuticals lands WHO Antibacterial Products in Clinical Development listing for RECCE® 327
Recce’s anti-infective pipeline includes three patented, broad-spectrum, synthetic polymer anti-infectives:
- RECCE® 327 (R327) as an intravenous and topical therapy that is being developed for the treatment of serious and potentially life-threatening infections due to Gram-positive and Gram-negative bacteria, including their superbug forms;
- RECCE® 435 (R435) as an orally administered therapy for bacterial infections; and
- RECCE® 529 (R529) for viral infections.