Starpharma expects $4.7m R&D tax rebate

Starpharma (ASX:SPL) has revealed it expects to receive a $4.7 million rebate for its FY13 R&D expenditures as part of the R&D tax incentive program.

AusIndustry has approved a submission by Starpharma applying for an additional $2.3 million in incentives related to overseas R&D activities for its Dendrimer-Docetaxel program.

The company is also due to receive the 45% rebate for eligible Australian expenditure under the program, including preparation work for the clinical trial due to commence shortly. Starpharma has also been cleared to claim overseas tax incentives for its VivaGel bacterial vaginosis program.

Taken together, the company expects to receive $4.7 million in credits for FY14 covering R&D expenses accrued during the previous financial year.

Starpharma’s submission to AusIndustry includes covers the clinical and regulatory activities for the Dendrimer-Docetaxel program over a three-year period starting with FY13.

In a statement, Starpharma CEO Jackie Fairley welcomed AusIndustry’s decision. “The R&D tax incentive is an important program to support Australian companies developing new pharmaceuticals and this positive ruling for Docetaxel is timely as this product moves into the clinic,” she said.

Starpharma (ASX:SPL) shares were trading unchanged at $0.85 as of around 1 pm on Wednesday.