I can only assume that Acadia’s US$120 m figure allows for various R & D credits.
There are tax credits available for US companies conducting clinical trials in the US. There is a dollar for dollar federal income tax liability offset available and most states also provide a similar credit.
In addition, Acadia's Phase 3 trofinetide trial would have qualified for a further 25% Orphan Drug R & D credit.
With respect to the tax credit available for biotechs here in Australia, for companies with a turnover of > $20 m, the rate is 38.5%. This applies to clinical trials conducted in Australia. It can possibly also apply to overseas trial costs if it can be proven that overseas trials are necessary, but an Advance Overseas Finding needs to be applied for. However, even if it is proven that conducting some trial activities outside of Australia is necessary, "the expenditure on the overseas activities and activities not undertaken wholly in Australia cannot exceed the expenditure on the related activities undertaken solely in Australia."
So will NEU be eligible for the R & D rebate on its Phase 3 trials? Jon Pilcher would be the best one to ask!
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