Paradigm Biopharmaceuticals (ASX:PAR) has received a research and development tax incentive rebate of $1.34 million for expenditure undertaken during the 2016 financial year.
The rebate is part of an Australian government program under which companies receive cash refunds for 45% of eligible expenditure on research and development.
Paradigm is currently preparing to test a treatment that could be the first to combat the Ross River virus.
A proposed Phase 2 clinical trial of the drug pentosan polysulfate sodium (PPS) will aim to treat Ross River and the related alphavirus chikungunya virus.
The viruses affect hundreds of thousands of people in South Asia each year and there is currently no effective treatment for either disease.
Transmission of the viruses is by mosquitoes that lead to a range of debilitating symptoms and signs such as joint swelling, fatigue and fever.
Paradigm shares are trading up 15% in 2017 currently priced at $0.45.