Regeneus Ltd (ASX:RGS) has received $3.7 million from the Australian Government's Research and Development Tax Incentive Program for activities conducted during the 2014 financial year.
The company will use the funds to progress its product pipeline and anticipates that it will be eligible to receive further reimbursement for funds in its R&D programs during the financial year 2015.
It adds to the $6.3 million it raised through an oversubscribed Share Purchase Plan and private placement as well as its cash reserves of $2.5 million as at 30 June 2014.
Regeneus had previously noted that the funding from the SPP, placement and tax rebate would be used for as follows:
- HiQCell, market development including Singapore: $0.9M;
- Progenza, pre-clinical and first-in-man trial: $1.8M;
- Human Cancer Vaccine, pre-clinical and first-in-man trial: $1.6M;
- Veterinary Health; and
- Canine Cancer Vaccine, marketing trials, commercialisation activities: $0.8M.
Regeneus develops and commercialises stem cell and other biological therapies for the human and veterinary health markets with a focus on musculoskeletal and oncology conditions.
Its lead human product, HiQCell, uses fat-derived stem cells from a patient's own body to treat osteoarthritis.
The company has earlier this week announced that it will open a HiQCell Regenerative Medicine Clinic at the prestigious Camden Medical Centre in Singapore - its first offshore treatment centre.
Singapore is recognised as a leading edge medical services hub for both local and international patient treatments.
The clinic, which will be led by leading sports and exercise medicine specialist Dr Patrick Goh, will provide patients in Singapore with access to HiQCell with first treatments expected to commence in late 2014.
HiQCell has been used to treat more than 500 patients and over 1,000 arthritic joints and was recently allowed by the Australian Football League on a case-by-case basis, a decision that does not apply to other stem cell therapies.
The company also plans to commence a clinical trial of donor adipose stem cells to treat human osteoarthritis in the second quarter of 2015.
Regeneus also has a clinical stage autologous therapeutic cancer vaccine, Kvax, which has just become available this month in Australia and is in a marketing trial in the U.S.
Kvax provides a new personalised therapy, which is specifically created to treat individual cancer cases.
Positive safety and early efficacy data was published for Kvax in early 2014 by Cancer Immunology Research, the peer-reviewed journal, published by the American Association for Cancer Research.
The $3.7 million tax refund adds to the $6.3 million raised through its SPP and private placement, ensuring that Regeneus can progress commercialisation of its regenerative therapies that use the patient's own tumour cells and stem cells to treat cancer and musculoskeletal conditions, such as osteoarthritis.
It adds to the recent expansion of HiQCell treatment to Singapore, its recognition by the Australian Football League and the availability of the Kvax canine cancer therapeutic to Australian dog owners.
There are significant share price kickers ahead, with initiatives for its HiQCell treatments to increase; the cell manufacture for pre-clinical study for off-the-shelf stem cell therapy to commence and progress made on stem cell cream.
In addition, Regeneus expects to be eligible to receive further reimbursement for funds in its R&D programs during the financial year 2015.
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