Imugene Ltd (ASX:IMU) (OTCMKTS:IUGNF) has received a research and development (R&D) tax refund of A$4,823,466 million as part of the Australian Government’s R&D tax incentive program.
This incentive recognises the important immuno-oncology research activities undertaken by Imugene during the financial year ended June 30, 2020.
Receiving more than A$4.823 million in additional funding will further support the company's commercial and clinical milestones.
The Australian Government’s R&D tax incentive encourages companies to engage in R&D programs by providing a refundable tax offset of up to 43.5% for eligible activities.
Phase-II trial study
Imugene’s valuation has recently been increased by Bell Potter after its ongoing randomised Phase 2 study of HER-Vaxx in gastric cancer showed positive overall survival (OS) with a Hazard Ratio of 0.418.
The median OS for patients receiving HER-Vaxx plus chemotherapy was 14.2 months, compared to 8.8 months in patients treated with chemotherapy alone.
Phase 2 data represent a clinical proof-of-concept signal for HER-Vaxx when added to chemotherapy and indicate that B-cell activating immunotherapy vaccines can induce clinically active antibody responses.
Bell Potter raised its valuation of Imugene to A$0.17 from A$0.05 and has maintained its buy (speculative) recommendation.
Shares today have been as much as 9% higher at A$0.125 intra-day while the company's market cap is approximately A$529.4 million.