Opthea Receives A$8.8 million R&D Tax Incentive
MELBOURNE, Australia, Dec. 19, 2023 – Opthea Limited (ASX:OPT; Nasdaq:OPT), a clinical stage biopharmaceutical company specializing in novel therapies for retinal diseases, has announced the receipt of an A$8.8 million (US$5.9 million) research and development (R&D) tax credit from the Australian Taxation Office. This cash incentive is in relation to R&D costs incurred during the 2022/2023 financial year and aligns with the amount disclosed in Opthea’s audited financial statements at 30 June 2023.
Opthea’s R&D tax incentive credit covers Australian and eligible overseas expenditure associated with the development of their lead candidate, OPT-302. The R&D Tax Incentive is a program by the Australian Federal Government that allows companies to receive cash incentives for 43.5% of eligible research and development expenses.
Fred Guerard, CEO of Opthea, expressed his satisfaction with the A$8.8 million R&D tax incentive credit, stating that it strengthens the company’s cash position as they continue to advance their Phase 3 registrational trials, ShORe and COAST. These trials investigate OPT-302’s potential to address the unmet medical needs in wet age-related macular degeneration (wet AMD).
Opthea Limited, listed on the ASX and Nasdaq as OPT, focuses on developing innovative therapies for prevalent and progressive retinal diseases such as wet AMD and diabetic macular edema (DME). Their lead product candidate, OPT-302, is undergoing pivotal Phase 3 clinical trials and aims to be used in combination with anti-VEGF-A monotherapies to achieve wider inhibition of the VEGF family. The goal is to improve overall efficacy and deliver superior vision gains compared to inhibiting VEGF-A alone.
Investing in biotechnology companies inherently carries certain risks. The lengthy clinical trial process assesses the safety and effectiveness of a drug before commercialization, and a significant portion of drugs do not meet these criteria. Other risks include uncertainty regarding patent protection and proprietary rights, obtaining necessary drug regulatory authority approvals, and challenges due to rapid technological advancements. Companies like Opthea heavily rely on the success of their research and development projects and their ability to secure funding for these endeavors. As such, investments in drug development companies should be approached as highly speculative and professional investment advice is recommended.
Opthea emphasizes the importance of seeking professional investment advice before making any investment decisions in biotechnology companies.
For more information, please contact:
Tel: +61 (0) 3 9826 0399
Email: info@opthea.com
Website: www.opthea.com
