Alchemia reaps $4.4m from R&D Tax Incentive

Alchemia (ASX:ACL) has received a payout under the R&D Tax Incentive scheme that has principally covered expenses related to phase III clinical trials.

The R&D Tax Incentive has so far returned tens of millions to Australian life science companies, with Alchemia (ASX:ACL) being the latest beneficiary, announcing a receipt of $4.4 million through the scheme.

The company received $3.4m through Alchemia Oncology, which is developing the company’s HyACT platform technology of targeted drug delivery to cancers.

It also received an additional $1m to Alchemia Ltd, which handles fondaparinux, a generic version of GlaxoSmithKline’s Arixtra.

According to the company, the funding comes from its domestic and overseas R&D expenditure, principally covering phase III trial expenses.

“We are delighted that applications submitted by Alchemia and Alchemia Oncology have been successful under this progressive and innovative government program,” said Alchemia CEO Charlie Walker.

“Payments arising from this program are expected to considerably reduce our financial requirements for this and coming years.”

The company also announced a total revenue for the 1HFY13 of $9.4 million and receipt of its first fondaparinux profit share from Dr Reddy’s of US$3.4m ($3.3m) shaved to US$2.9m ($2.82m) after a payment to Dr Reddy’s to help improve yields.

Fondaparinux sold by Dr Reddy’s has now established a 25% market share by volume with net sales of US$12.3 million ($12m).

Alchemia Oncology also announced it has continued recruitment for its phase III trial of HA-Irinotecan in metastatic colorectal cancer, with the first patient being dosed on 4 January last year and the 390th patient being recruited on 31 January 2012.

Alchemia has ended the first half of FY13 with a net loss after tax of $5.9m, down fractionally from the $6m over the same period the previous year.

Alchemia (ASX:ACL) was steady on 32c as of around 11 am Wednesday.