Look for up-and-comers to start announcing government grants Print E-mail
By M.E.Garza   
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.

Healthcare Reform Gave Biotech Everything It Wanted, and More

H.R.3590 - Patient Protection and Affordable Care Act

Biologic drugs developed through genetic engineering techniques and incubated in living cells, were also granted a 12-year period of data exclusivity on the market, (to protect them from cheaper copycat competitors) as part of the healthcare reform changes. That change will allow the innovative companies to recoup their long investment in research and development.

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.




"Featured Content" profiles are meant to provide awareness of these companies to investors in the small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. BiomedReports is not paid or compensated by newswires to disseminate or report news and developments about publicly traded companies, but may from time to time receive compensation for advertising, data, analytics and investor relation services from various entities and firms. Full disclosures should be read in the 'About Us Section'.

Add this page to your favorite Social Bookmarking websites
Digg! Reddit! Del.icio.us! Mixx! Google! Live! Facebook! Technorati! StumbleUpon! MySpace! Yahoo!

blog comments powered by Disqus
 

Newsletter