Biota reaps $4.2m from R&D Tax Incentive

Biota (ASX:BTA) has revealed it has received a $4.2 million cash rebate under the government's R&D Tax Incentive.

The company said it will recognise the $4.2 million as a tax credit in its December quarterly financial filings.

Biota revealed in its FY12 annual report that it had submitted the tax credit claim, but did not recognise it in the financial statements for the year, stating that “directors believe it is appropriate to [first] understand how the offset will be administered by the ATO and AusIndustry.”

Shareholders in Biota last month approved a proposal for a reverse takeover of US-based, Nasdaq-listed Nabi Pharmaceuticals.

The merged company will have revenue generating products including flu drugs laninamivir (Inavir) and zanamivir (Relenza), and a development pipeline including treatments for human rhinovirus (HRV), respiratory syncytial virus (RSV) and Hepatitis C (HCV).

The company now expects to delist from the ASX and quote on the Nasdaq by November 9. Its shares were suspended from trading on the ASX on October 30, at a price of 57c.