CorMedix Completes Sale of $5.5 Million of NOL Tax Benefits through New Jersey Technology Business Tax Certificate Transfer P...
April 22 2020 - 8:00AM
CorMedix Inc. (NYSE American: CRMD), a biopharmaceutical company
focused on developing and commercializing therapeutic products for
the prevention and treatment of infectious and inflammatory
disease, today announced that it has completed the previously
announced sale of $5.5 million of the total $6.0 million of its
available tax benefits to an unrelated, profitable New Jersey
corporation through the New Jersey Economic Development Authority’s
New Jersey Technology Business Tax Certificate Transfer program for
State Fiscal Year 2019. As a result, the Company has received
approximately $5.2 million in cash from the sale of these NOL tax
benefits.
“This transaction closed amid significant market
volatility, so the timing could not be better,” commented Khoso
Baluch, CorMedix CEO. “This funding will be helpful as we continue
our preparations to commercialize Neutrolin®, whether on our own or
with a strategic or commercial partner. We have remained on
schedule towards an anticipated approval in the second half of
2020, subject of course to possible delays at FDA due to the
coronavirus pandemic.”
The New Jersey Technology Business Tax
Certificate Transfer (NOL) program enables qualified, unprofitable
NJ-based technology or biotechnology companies with fewer than 225
U.S. employees (including parent company and all subsidiaries) to
sell a percentage of net operating losses and research and
development (R&D) tax credits to unrelated profitable
corporations. NOLs and R&D tax credits may be sold for at least
80 percent of their value, up to a maximum lifetime benefit of $15
million per business. This allows qualifying technology and
biotechnology companies with NOLs to turn their tax losses and
credits into cash proceeds to fund growth and operations, including
research and development or other allowable expenditures.
About CorMedix
CorMedix Inc. is a biopharmaceutical company
focused on developing and commercializing therapeutic products for
the prevention and treatment of infectious and inflammatory
diseases. The Company is focused on developing its lead product
Neutrolin®, a novel, non-antibiotic antimicrobial solution designed
to prevent costly and dangerous bloodstream infections associated
with the use of central venous catheters. The Company completed a
Phase 3 clinical trial of Neutrolin in patients undergoing chronic
hemodialysis, which showed a 71% reduction in catheter-related
bloodstream infections (CRBSIs) relative to the heparin control arm
(p=0.0006) with a good safety profile. Such infections cost the
U.S. healthcare system approximately $6 billion annually and
contribute significantly to increased morbidity and mortality.
Neutrolin has FDA Fast Track status and is designated as a
Qualified Infectious Disease Product, which provides the potential
for priority review of a marketing application by FDA and allows
for 5 additional years of QIDP market exclusivity in the event of
U.S. approval. FDA has granted rolling submission and review of
portions of the new drug application (NDA) and CorMedix has begun
submission of the NDA. Neutrolin is already marketed as a CE Marked
product in Europe and other territories. In parallel, CorMedix is
leveraging its taurolidine technology to develop a pipeline of
antimicrobial medical devices, with active programs in surgical
sutures and meshes, and topical hydrogels. The company is also
working with top-tier researchers to develop taurolidine-based
therapies for rare pediatric cancers. For more information, visit:
www.cormedix.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that are subject to risks and uncertainties. All
statements, other than statements of historical facts, regarding
management’s expectations, beliefs, goals, plans or CorMedix’s
prospects, future financial position, financing plans, future
revenues and projected costs should be considered forward-looking.
Readers are cautioned that actual results may differ materially
from projections or estimates due to a variety of important
factors, including: the results of our discussions with the FDA
regarding the Neutrolin development path, including whether a
second Phase 3 clinical trial for Neutrolin will be required; the
resources needed to complete the information required to submit a
new drug application for Neutrolin to the FDA; the risks and
uncertainties associated with CorMedix’s ability to manage its
limited cash resources and the impact on current, planned or future
research, including the continued development of Neutrolin and
research for additional uses for taurolidine; obtaining additional
financing to support CorMedix’s research and development and
clinical activities and operations; preclinical results are not
indicative of success in clinical trials and might not be
replicated in any subsequent studies or trials; and the ability to
retain and hire necessary personnel to staff our operations
appropriately. At this time, we are unable to assess whether, and
to what extent, the uncertainty surrounding the coronavirus
pandemic may impact our business and operations. These and other
risks are described in greater detail in CorMedix’s filings with
the SEC, copies of which are available free of charge at the SEC’s
website at www.sec.gov or upon request from CorMedix. CorMedix may
not actually achieve the goals or plans described in its
forward-looking statements, and investors should not place undue
reliance on these statements. CorMedix assumes no obligation and
does not intend to update these forward-looking statements, except
as required by law.
Investor Contact:Dan
FerryManaging DirectorLifeSci Advisors617-430-7576
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