Alterity Therapeutics Receives a A$3.9 Million Research & Development Tax Incentive Refund
Alterity Therapeutics receives A$3.9 million cash refund for R&D activities, to advance Phase 2 clinical trials in MSA.
The receipt of a A$3.9 million cash refund from the Australian Taxation Office under the R&DTI Scheme is a positive liquidity event for Alterity Therapeutics. This influx of non-dilutive capital bolsters the company's balance sheet, potentially extending its cash runway. This is particularly important for biotech firms, where the costs of R&D are substantial. Investors often scrutinize the cash burn rates of such companies, as they are typically pre-revenue and rely on capital markets or partnerships for funding.
Furthermore, the earmarking of these funds for ongoing Phase 2 clinical trials in Multiple System Atrophy (MSA) and planning for a potential Phase 3 trial is an indication of the company's progress in its pipeline. Success in these trials could lead to significant value creation, given the high unmet medical need in neurodegenerative diseases. However, investors should be aware of the inherent risks of clinical trials, as any setbacks could negatively impact the company's valuation.
From a medical research perspective, Alterity's focus on neurodegenerative diseases such as MSA and Parkinson's Disease is noteworthy. These diseases currently have limited effective treatments and any advancements could have significant clinical impact. The funds from the R&DTI Scheme will support the continuation of ATH434-201 and ATH434-202 trials, which are critical in determining the efficacy and safety of the company's therapeutic candidates.
For stakeholders, the implications of successful Phase 2 trials are twofold: firstly, they bring the company one step closer to potentially providing a new treatment option for patients and secondly, they position Alterity as an attractive partner for larger pharmaceutical companies looking to expand their neurodegenerative disease portfolio. The potential Phase 3 trial planning indicates a strategic foresight, yet it is also a stage where many candidates fail, so cautious optimism is warranted.
The neurodegenerative disease market is expected to grow, driven by an aging population and increased prevalence of diseases like MSA and Parkinson's. Alterity's strategic investment in R&D, supported by the R&DTI refund, aligns with the market demand for novel therapies. A successful market entry of Alterity's products could capture a significant market share, considering the current competitive landscape is focused on symptomatic treatments rather than disease modification.
However, it's essential to understand that the path to market is long and uncertain for biotech firms. Alterity's ability to navigate the clinical trial process and subsequent regulatory hurdles will be critical in determining its future market position. The company's financial health, as reinforced by the R&DTI Scheme refund, provides a measure of security as it undertakes these expensive and time-consuming endeavors.
03/26/2024 - 10:25 AM
MELBOURNE, Australia and SAN FRANCISCO, March 27, 2024 (GLOBE NEWSWIRE) -- Alterity Therapeutics Limited (ASX: ATH, NASDAQ: ATHE) (“Alterity” or “the Company”), a biotechnology company dedicated to developing disease modifying treatments for neurodegenerative diseases, today announced that it has received a A$3.9 million cash refund from the Australian Taxation Office under the Australian Government’s Research and Development Tax Incentive (R&DTI) Scheme.
The cash refund relates to the cost of eligible research and development activities conducted during the financial year ended 30 June 2023, and represents the amount disclosed in the company’s audited financial statements. These funds will be used to further Alterity’s Phase 2 clinical trials in MSA, ATH434-201 and ATH434-202, along with planning for a potential Phase 3 clinical trial in MSA, continuing discovery and research efforts in neurodegenerative diseases, including Parkinson’s Disease, and general working capital.
About ATH434 Alterity’s lead candidate, ATH434, is an oral agent designed to inhibit the aggregation of pathological proteins implicated in neurodegeneration. ATH434 has been shown preclinically to reduce α-synuclein pathology and preserve neuronal function by restoring normal iron balance in the brain. As an iron chaperone, it has excellent potential to treat Parkinson’s disease as well as various Parkinsonian disorders such as Multiple System Atrophy (MSA). ATH434 is currently being studied in two clinical trials: Study ATH434-201 is a randomized, double-blind, placebo-controlled Phase 2 clinical trial in patients with early-stage MSA and Study ATH434-202 is an open-label Phase 2 Biomarker trial in patients with more advanced MSA. ATH434 has been granted Orphan drug designation for the treatment of MSA by the U.S. FDA and the European Commission.
About Alterity Therapeutics Limited Alterity Therapeutics is a clinical stage biotechnology company dedicated to creating an alternate future for people living with neurodegenerative diseases. The Company’s lead asset, ATH434, has the potential to treat various Parkinsonian disorders and is currently being evaluated in two Phase 2 clinical trials in Multiple System Atrophy. Alterity also has a broad drug discovery platform generating patentable chemical compounds to treat the underlying pathology of neurological diseases. The Company is based in Melbourne, Australia, and San Francisco, California, USA. For further information please visit the Company’s web site at www.alteritytherapeutics.com.
Authorisation & Additional information This announcement was authorized by David Stamler, CEO of Alterity Therapeutics Limited.
Investor and Media Contacts:
Australia we-aualteritytherapeutics@we-worldwide.com
U.S. Remy Bernarda remy.bernarda@iradvisory.com
Alterity Therapeutics received a A$3.9 million cash refund from the Australian Taxation Office.
The funds will be used to further Alterity's Phase 2 clinical trials in MSA, ATH434-201 and ATH434-202, along with planning for a potential Phase 3 clinical trial in MSA, continuing discovery and research efforts in neurodegenerative diseases, including Parkinson's Disease, and general working capital.
The ticker symbol for Alterity Therapeutics on the NASDAQ is ATHE.
