CENTOGENE Receives French Research Tax Credit Accreditation
- Recognition by the French Ministry of Higher Education and Research as a qualified organization to support R&D projects in France
- Accreditation under the French R&D tax credit initiative for a three-year period
- Ability for eligible research-based companies to claim tax relief on 30% of all costs incurred in R&D activities outsourced to CENTOGENE
- Lowering overall R&D costs for partners
- Supporting current and future partners in generating novel insights and delivering data-driven, life-changing answers to rare and neurodegenerative disease patients
- None.
Centogene's accreditation under the French Crédit d'Impôt Recherche (CIR) is a significant fiscal advantage that can attract research-based companies looking to outsource R&D activities. The tax relief equates to a substantial reduction in R&D expenditure, allowing companies to reclaim 30% of their costs, capped at €100 million. This incentive can lead to increased R&D investments and partnerships, potentially enhancing innovation in the life sciences sector. Companies can allocate more resources towards research without an equivalent increase in net expenses, which can positively influence their financial statements and valuation.
Moreover, the three-year duration of the accreditation provides a stable horizon for financial planning, which is crucial for companies in the biotech and life sciences industries where R&D projects often span several years. The accreditation signals to the market that Centogene is a credible partner for R&D endeavors, which could have a positive impact on its stock as investors may anticipate an uptick in business collaborations.
The recognition of Centogene by the French Ministry highlights the company's expertise in the field of rare and neurodegenerative diseases. As a result, Centogene may see an influx of partnerships, given the incentive for companies to leverage the tax relief. The increased business activity could lead to a rise in demand for Centogene's services, potentially driving up its revenue. From a market perspective, this development may be viewed as a growth catalyst and investors might expect improved performance metrics in the future financial reports.
However, it is important to monitor how the market responds to such fiscal incentives. If many organizations receive similar accreditations, the competitive advantage could be diluted. Additionally, the company's ability to capitalize on this accreditation depends on its operational efficiency and the quality of R&D services it provides.
The CIR accreditation could have a ripple effect on Centogene's financial health. By facilitating cost-effective R&D for partners, Centogene may boost its revenue streams through increased service demand. This financial lever has the potential to improve profit margins, as tax credits directly reduce tax liabilities, enhancing net income. Investors should evaluate the potential increase in earnings against the backdrop of the company's R&D capabilities and the market's demand for such services.
It's also crucial to assess how this accreditation affects the company's long-term strategy. By positioning itself as a cost-effective R&D partner, Centogene may secure long-term contracts that provide stable revenue streams. This strategic positioning can be particularly attractive to investors seeking companies with sustainable growth prospects.
Partners able to claim up to
CAMBRIDGE, Mass. and ROSTOCK, Germany, and BERLIN, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Centogene N.V. (Nasdaq: CNTG), the essential life science partner for data-driven answers in rare and neurodegenerative diseases, today announced that it has been recognized by the French Ministry of Higher Education and Research as a qualified organization to support partners conducting R&D projects in France. Accordingly, it has received accreditation under the French R&D tax credit initiative ('Crédit d'Impôt Recherche', CIR) for a three-year period.
The CIR initiative enables eligible research-based companies, who are subject to corporate tax in France, to claim tax relief on
Prof. Peter Bauer, Chief Medical & Genomic Officer at CENTOGENE, stated, “'We are excited to receive this accreditation as it recognizes our advanced research capabilities that we support our customers with. By lowering overall R&D costs, we will be able to support our current and future partners in generating novel insights and delivering data-driven, life-changing answers to rare and neurodegenerative disease patients.”
To learn more about the CIR initiative, visit: https://link.centogene.com/cir
About CENTOGENE
CENTOGENE’s mission is to provide data-driven, life-changing answers to patients, physicians, and pharma companies for rare and neurodegenerative diseases. We integrate multiomic technologies with the CENTOGENE Biodatabank – providing dimensional analysis to guide the next generation of precision medicine. Our unique approach enables rapid and reliable diagnosis for patients, supports a more precise physician understanding of disease states, and accelerates and de-risks targeted pharma drug discovery, development, and commercialization.
Since our founding in 2006, CENTOGENE has been offering rapid and reliable diagnosis – building a network of approximately 30,000 active physicians. Our ISO, CAP, and CLIA certified multiomic reference laboratories in Germany utilize Phenomic, Genomic, Transcriptomic, Epigenomic, Proteomic, and Metabolomic datasets. This data is captured in our CENTOGENE Biodatabank, with over 800,000 patients represented from over 120 highly diverse countries, over
By translating our data and expertise into tangible insights, we have supported over 50 collaborations with pharma partners. Together, we accelerate and de-risk drug discovery, development, and commercialization in target and drug screening, clinical development, market access and expansion, as well as offering CENTOGENE Biodata Licenses and Insight Reports to enable a world healed of all rare and neurodegenerative diseases.
To discover more about our products, pipeline, and patient-driven purpose, visit www.centogene.com and follow us on LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project,” “plan,” “is designed to,” “is set to,” “potential,” “predict,” “objective” and similar expressions and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” and “may,” or the negative of these are generally intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors that may cause CENTOGENE’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward- looking statements. Such risks and uncertainties include, among others, negative economic and geopolitical conditions and instability and volatility in the worldwide financial markets, possible changes in current and proposed legislation, regulations and governmental policies, pressures from increasing competition and consolidation in our industry, the expense and uncertainty of regulatory approval, including from the U.S. Food and Drug Administration, changes in our mix of customers and partners and their order practices with respect to our products and solutions, our reliance on third parties and collaboration partners, including our ability to manage growth, execute our business strategy and enter into new client relationships, our dependency on the rare disease industry, our ability to manage international expansion, our reliance on key personnel, our reliance on intellectual property protection, fluctuations of our operating results due to the effect of exchange rates, our ability to streamline cash usage, our continued ongoing compliance with covenants linked to financial instruments, our requirement for additional financing, and our ability to continue as a going concern, or other factors. For further information on the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to CENTOGENE’s business in general, see CENTOGENE’s risk factors set forth in CENTOGENE’s Form 20-F filed on May 16, 2023, with the Securities and Exchange Commission (the “SEC”) and subsequent filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and CENTOGENE specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT
CENTOGENE
Melissa Hall
Corporate Communications
Press@centogene.com
Lennart Streibel
Investor Relations
IR@centogene.com
FAQ
What is the ticker symbol for Centogene N.V.?
What tax relief percentage can eligible research-based companies claim for R&D activities outsourced to CENTOGENE?
Who recognized Centogene N.V. as a qualified organization to support R&D projects in France?
What is the purpose of the French R&D tax credit initiative (CIR)?
What will the accreditation under the French R&D tax credit initiative enable for Centogene N.V.?
