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Cellmid's R&D Tax Credit To Advance Midkine Product Development

Cellmid (ASX: CDY) has received a $748,193 cash refund under the Australian Government's R&D Tax Incentives Scheme, which will be used to advance the company's midkine product development programs.

The tax refund relates to the costs of research and development conducted by the company during the 2012 financial year and was calculated at 45% of eligible expenditure.

Cellmid is currently focused on its midkine product development, with new products already planned in the pipeline.

The company holds the most significant intellectual property portfolio related to midkine worldwide, fostering development of multiple product lines and commercialisation opportunities.

Midkine is a novel target for cancer diagnosis and for the treatment of inflammatory conditions and cancer.

Cellmid recently secured a commercially important midkine protein patent in the United States. The patent is key to the company's program for the treatment of various forms of ischemia including heart attack.

The company's patent portfolio currently includes 75 patents in 20 patent families, covering use of midkine and anti-midkine agents for therapeutic purposes in a number of diseases, and the use of midkine as a diagnostic marker in cancer and other disorders.

Strategic approach

Cellmid's strategy is to develop its midkine related technology and then out licence or partner.

The company has previously said it is in discussions with multiple partners in relation to both its diagnostic and therapeutic assets.

Cellmid has a vast portfolio of assets to out licence, including midkine as a cancer diagnostic/prognostic for multiple cancer indications, midkine antiboties for therapy of autoimmunity and inflammation and midkine protein for the treatment of ischemia including heart attack.

Well-funded

Cellmid is sufficiently funded to proceed with its current, low cost business strategy, with A$1.051 million in cash at the end of the June 2012 quarter, not including the $400,000 since received in new subscriptions and revenue from Advangen and évolis® sales.

The R&D cash refund will further build on this, as will the recently launched fully underwritten option placement to raise just over $545,000 in funds for working capital.

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