23 Nov 2012, BioSpectrum Bureau , BioSpectrum
Singapore: Australia-based Starpharma is eligible to receive approximately $6 million cash in R&D tax incentives for overseas research activities related to VivaGel. Starpharma has made a submission in this regard to AusIndustry. The R&D Incentive Program is jointly administered by AusIndustry (on behalf of Innovation Australia) and the Australian Taxation Office.
AusIndustry notified the company that its overseas R&D activities satisfy the required criteria under the 45 percent R&D Tax Incentive Program. The submission supports VivaGel's bacterial vaginosis clinical and regulatory program. The finding covers certain overseas activities held over a period of three years from July 01, 2011. It is estimated that $3.3 million of the total $6 million cash refund relates to the 2011-12 financial year.
In addition to the cash refund for eligible overseas expenditure, Starpharma estimates that it will also receive a further $2 million of R&D tax incentive from eligible Australian R&D activities and expenditure. The company therefore anticipates that following submission of the its 2011-12 tax return, $5.3 million cash refund will be received in the current financial year. Starpharma had previously reported an estimated R&D tax incentive of $1.3 million in the 2012 annual report.
Starpharma CEO, Dr Jackie Fairley, said that, "I think we all agree on the critical importance of innovation to the growth and diversification of the Australian economy. This cash refund program is an excellent example of how Government initiatives can support the development of successful companies like Starpharma in innovation based sectors such as biotechnology."