|Look for up-and-comers to start announcing government grants|
|Tuesday, 02 November 2010 02:47|
We should start seeing news flow from Biotech companies who will get millions in grants under the Therapeutic Discovery Tax Credit program that was enacted under President Obama's Patient Protection and Affordable Care Act.
For some companies, the grant monies could be a game changer that could put enough cash in war chests to go into, otherwise impossibly expensive, clinical trials for some pipeline programs that had been shelved until more capital could be raised.
The program targets projects that show potential to produce new therapies, address unmet medical needs, reduce the long-term growth of health care costs and advance the goal of curing cancer.
The legislation was backed by the Biotechnology Industry Organization and is especially favorable to startups and small companies.
Forbes broke down some of the highlights of the program, ealier in the year:
If the biotech company has a tax liability, they can get a 50 percent tax credit; if you have no tax liability, they can get a grant in the same amount that is tax-free so long as the credit covers qualified investments in “therapeutic discovery projects.”
Qualifying research programs must fulfill at least one of the following three criteria:
1) Research designed to treat diseases via preclinical research or clinical studies for the purpose of getting FDA approval of the treatment.
2) Research designed to diagnose diseases or find molecular factors related to diseases by developing diagnostics that can be used to make therapeutic decisions.
3) Research designed to develop some methodology that would advance the delivery or administration of therapeutics.
Keep an eye on this news flow to start from various companies as many of them have begun to get notifications from the U.S. gvernment about whether or not they will receive monies/grants through the program. For some, grants awarded under the program may also be seen as a validation of the contribution the company is making to the biotech industry and to healthcare as a whole.