Immutep Receives A$3.6 million R&D Tax Incentive from French Government

Rhea-AI Summary

Immutep (ASX: IMM; NASDAQ: IMMP) has received a €2,194,918 (~A$3,627,980) R&D tax incentive payment from the French Government under its Crédit d'Impôt Recherche (CIR) scheme. This cash payment is for eligible R&D activities conducted in the European Union during the 2023 calendar year. The CIR allows French companies to be reimbursed 30% of their eligible R&D expenditure.

Immutep qualifies for this incentive through its subsidiary Immutep S.A.S., which conducts research in its French laboratory. The company also qualifies for cash rebates from the Australian Federal Government's R&D tax incentive program for eligible activities in Australia. These funds will support the ongoing and planned global clinical development of eftilagimod alpha and IMP761.

Positive

• Received €2,194,918 (~A$3,627,980) R&D tax incentive payment from French Government
• Qualifies for additional cash rebates from Australian Federal Government's R&D tax incentive program
• Funds to support ongoing and planned global clinical development of eftilagimod alpha and IMP761

Negative

• None.

Insights

Financial Analyst

This A$3.6 million R&D tax incentive from the French government is a positive development for Immutep. The cash injection strengthens the company's financial position without diluting shareholders. For a biotech with a market cap of $332.6 million, this represents about 1.1% of its value, which is not insignificant.

The funds will directly support ongoing clinical development of key drug candidates eftilagimod alpha and IMP761. This could potentially accelerate their progress through clinical trials, bringing them closer to potential commercialization. It's worth noting that Immutep also qualifies for R&D tax incentives in Australia, indicating a diversified approach to non-dilutive funding.

While this news is positive, investors should remember that biotech companies often require substantial capital to bring drugs to market. This incentive, while helpful, doesn't fundamentally change Immutep's long-term funding needs or clinical timelines. It does, however, demonstrate the company's ability to leverage government incentives effectively, which is a positive sign for financial management.

Media Release

SYDNEY, AUSTRALIA, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Immutep Limited (ASX: IMM; NASDAQ: IMMP) ("Immutep“ or “the Company”), a biotechnology company developing novel LAG-3 related immunotherapy treatments for cancer and autoimmune diseases, is pleased to announce it has received a €2,194,918 (~ A$3,627,980 ) research and development (R&D) tax incentive payment in cash from the French Government under its Crédit d’Impôt Recherche scheme (CIR).

The “Crédit d’Impôt Recherche” (CIR), meaning “Research Tax Credit”, is a French government tax incentive by which French companies conducting research and development activities in Europe can be reimbursed 30% of their eligible expenditure.

Immutep qualifies for the CIR tax incentive through its subsidiary Immutep S.A.S. due to the research and development conducted in its laboratory in France. The cash payment is provided in respect of expenditure incurred on eligible R&D activities conducted in the European Union in the 2023 calendar year. Immutep also qualifies for cash rebates from the Australian Federal Government’s R&D tax incentive program in respect of expenditure incurred on eligible R&D activities conducted in Australia.

The funds will be used to support the ongoing and planned global clinical development of eftilagimod alpha and IMP761.

About Immutep
Immutep is a clinical-stage biotechnology company developing novel LAG-3 immunotherapy for cancer and autoimmune disease. We are pioneers in the understanding and advancement of therapeutics related to Lymphocyte Activation Gene-3 (LAG-3), and our diversified product portfolio harnesses its unique ability to stimulate or suppress the immune response. Immutep is dedicated to leveraging its expertise to bring innovative treatment options to patients in need and to maximise value for shareholders. For more information, please visit www.immutep.com.

Australian Investors/Media:
Catherine Strong, Citadel-MAGNUS
+61 (0)406 759 268; catherine.strong@sodali.com

U.S. Investors/Media:
Chris Basta, VP, Investor Relations and Corporate Communications
+1 (631) 318 4000; chris.basta@immutep.com

FAQ

How much R&D tax incentive did Immutep (IMMP) receive from the French Government?

Immutep (IMMP) received €2,194,918 (approximately A$3,627,980) as an R&D tax incentive payment from the French Government under its Crédit d'Impôt Recherche scheme.

What is the Crédit d'Impôt Recherche (CIR) scheme that Immutep (IMMP) benefited from?

The Crédit d'Impôt Recherche (CIR) is a French government tax incentive that allows French companies conducting R&D activities in Europe to be reimbursed 30% of their eligible expenditure.

How will Immutep (IMMP) use the funds received from the French R&D tax incentive?

Immutep (IMMP) will use the funds to support the ongoing and planned global clinical development of eftilagimod alpha and IMP761.

Does Immutep (IMMP) qualify for any other R&D tax incentives?

Yes, Immutep (IMMP) also qualifies for cash rebates from the Australian Federal Government's R&D tax incentive program for eligible R&D activities conducted in Australia.