Australian-based reproductive biotechnology company, Memphasys says it has received a research and development (R&D) tax refund of about $1.3 million from the Australian Tax Office (ATO).
The refund has been used to repay an R&D loan to Radium Capital of $849,000 plus interest of $46,621.
Management says its net refund of $419,466 will be reinvested in MEM and used as working capital to fund continued development and commercialisation of its novel products which include medical devices, in vitro diagnostics, and new proprietary media.
The company’s patented bio-separation technology, utilised by the company’s most advanced product, the Felix System device, combines electrophoresis with proprietary size exclusion membranes to separate the most viable sperm cells for human artificial reproduction.
In April, Memphasys revealed its first commercial sale of 30 sterile single-use Felix cartridges and a console to the Kobe assisted reproductive therapy (ART) clinic in Japan. The clinic placed the order based on the strong endorsement of the system in two papers published by leading global IVF clinics.
Japan represents one of the top five addressable markets globally for Felix, with a potential market opportunity exceeding $100 million.
The R&D Tax Incentive is a business assistance program administered by the Australian Government to support businesses undertaking R&D activities. R&D entities with an aggregated turnover of less than $20 million are entitled to a refundable tax offset fixed at 18.5 percentage points above the company’s tax rate. In Memphasys’ case, this is 43.5 per cent. The benefit is reviewed and audited by the ATO and AusIndustry.
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By Doug Bright
