Actinogen Medical Bolsters Financial Position with $9 Million R&D Tax Rebate
ACW (ACW) Share Update November 2024 Monday 11th
Actinogen Medical Secures $9 Million R&D Tax Rebate
Actinogen Medical Limited (ASX: ACW) has announced a significant financial boost, receiving a $9 million R&D tax incentive rebate from the Australian Tax Office for the 2024 financial year.
Instant Summary:
- Received $9,034,351 R&D tax incentive rebate.
- Funds provide cash runway to mid-2026.
- Supports full enrolment for Alzheimer's phase 2b/3 trial.
Financial Boost from R&D Tax Incentive
Actinogen Medical has announced that it received a substantial R&D tax incentive rebate amounting to $9,034,351 from the Australian Tax Office. This rebate is part of the Australian federal government's program that offers cash refunds for eligible research and development expenditures.
The rebate is a critical source of funding for Actinogen, providing a financial runway that extends to mid-2026. This funding is pivotal for the company as it supports the full enrolment of 220 participants in its Alzheimer's phase 2b/3 clinical trial.
About Actinogen and Xanamem
Actinogen Medical is a biotechnology company focused on developing therapies for neurological and neuropsychiatric diseases linked to dysregulated brain cortisol. The company's lead compound, Xanamem, is being developed as a treatment for Alzheimer's Disease and Depression, with potential future applications for Fragile X Syndrome and other conditions.
Xanamem works by inhibiting the enzyme 11β-HSD1, which controls cortisol levels in the brain, potentially mitigating the harmful effects of elevated cortisol associated with Alzheimer's progression and depressive symptoms.
Current Clinical Trials
The company is conducting the XanaMIA Phase 2b Alzheimer's disease trial, a 36-week, double-blind, placebo-controlled study involving 220 patients with mild to moderate Alzheimer's. The trial aims to assess Xanamem's ability to slow disease progression using various endpoints, including the CDR-SB scale.
Initial results from an interim analysis of the first 100 participants are expected in mid-2025, with final results anticipated by mid-2026.
The $9 million rebate significantly strengthens Actinogen's financial position, allowing it to continue its clinical trials without financial strain. This could positively influence the company's stock as investors gain confidence in its ability to sustain operations and progress its clinical programs.
Investor Reaction:
Analysts are likely to view this financial boost positively, as it underscores the company's ability to secure necessary funding for its ambitious clinical trials. The extended cash runway may alleviate investor concerns about funding gaps.
Conclusion:
Investors should keep an eye on Actinogen's upcoming clinical trial results, as these will be crucial in determining the long-term success of Xanamem. The company's strengthened financial position provides a solid foundation for future developments.