Overview
When US novel pharmaceuticals innovator BioFactura decided to expand its research, the R&D Tax Incentive (R&DTI) made Australia its first choice, so BioFactura established a subsidiary in Adelaide in early 2019.
The Doctor’s Orders
BioFactura had capital but needed to raise equity to keep its Australian research on track — just as COVID-19 spooked investors worldwide. Worse still, the business hadn’t recruited all its Australian clinical trial participants. And Australia’s border closures and lockdowns were deterring healthy adult volunteers from signing up. BioFactura needed to find more capital and trial candidates promptly or face failure. So it began exploring novel solutions.
Finding the capital cure
The R&DTI had attracted BioFactura to Australia. But with its R&D tax refund over 12 months away, BioFactura needed another source of capital quickly to complete its clinical trials overseas. BioFactura’s R&D Tax Consultant explored the company’s eligibility for Radium Advances, and BioFactura began accessing its R&D refund early.
Then BioFactura’s Tax Advisor investigated whether clinical trials in New Zealand could qualify as Overseas Findings and form part of its R&DTI claim. In October 2021, AusIndustry issued Advance and Overseas findings for BioFactura confirming its overseas and domestic R&D were eligible.
BioFactura Inc. Chairman & Chief Medical Officer Dr Jeffrey Hausfeld says, “Radium Advances were transformative for our R&D. We were able to access them in a few business days and they enabled us to rapidly increase our R&D budget by around 50%, giving us cash flow to keep our research moving.”
Now, the business is thriving and rolling out development plans under its ongoing commitment to Australia.
Download the case study to discover how BioFactura averted a cash-flow crisis by unlocking its tax refund with five Radium Advances over nine months.
For more information on BioFactura, visit BioFactura.
