Leading regenerative medicine company Orthocell Ltd (ASX:OCC, OTC:ORHHF) has secured an Australian Research and Development (R&D) Tax Incentive refund amounting to A$3.05 million for the fiscal year 2022-2023.
The Australian R&D Tax Incentive supports local companies engaged in R&D activities, offering cash rebates of up to 48.5% of eligible expenditure.
This program continues to underpin innovation within the Australian corporate sector, especially in high-tech industries like regenerative medicine.
Strong cashflow
The cashback bolsters the company's already robust financial position, which now stands at A$22.25 million.
A recent strategic placement, which raised an additional A$3.5 million backed by notable investors including Chris Ellison, Rod Jones, Michael Malone, the McCusker Family and the Merchant Biotech Fund, also contributed to Orthocell's strong cash flow.
The influx of funds, along with the tax refund, positions the company advantageously for its upcoming initiatives.
US activities
Orthocell is gearing up for the pivotal US product registration of its innovative nerve repair device, Remplir™, expected in the first quarter of 2025.
Along with this, the company anticipates top-line results from the US FDA study on Remplir™ in the third quarter of 2024 and aims to submit a US$510,000 market authorisation application by the fourth quarter of 2024.
Orthocell chair John Van Der Wielen said: “Orthocell now holds $22.25 million in cash, has no debt and is free from any royalty payment obligations.
“I’m energised by the path forward for this company and look forward to assisting the team to execute its global market expansion strategy – which includes accelerating the Remplir™ nerve repair US market access program and OrthoATI™ partnering activities in the USA.
“We remain resolutely focused on execution now, to scale the reach and impact of these world-class medical products – a milestone for Australia’s innovation sector at large.”
Orthocell's leadership has been further enhanced by the recent board restructure, including the addition of two high-profile independent directors - Professor Fiona Wood AM and the Hon Kim Beazley AC.
The company has also solidified a long-term partnership with the University of Western Australia, exchanging all royalty entitlements for shares.