CorMedix Approved to Sell $1.3 Million of NOL Tax Benefits Through The New Jersey Economic Development Authority Program
March 15 2021 - 7:30AM
CorMedix Inc. (NASDAQ: 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 been approved by the New Jersey
Economic Development Authority (NJEDA) to transfer approximately
$1.3 million of the total $1.3 million of its available tax
benefits to an unrelated, profitable New Jersey corporation
pursuant to the Company’s application to participate in the New
Jersey Technology Business Tax Certificate Transfer (NOL) program
for State Fiscal Year 2020. The Company anticipates receiving
approximately $1.3 million in cash proceeds from the sale of its
NOLs during the second quarter of 2020. Closing is subject to
NJEDA’s typical closing conditions, which are in process.
“We are pleased to receive an allocation from
this program for the third consecutive year,” said Khoso Baluch,
Chief Executive Officer of CorMedix. “The funding will help us
continue to advance DefenCath toward an anticipated commercial
launch upon approval for the U.S. market.”
The 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. 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. CorMedix is one of 49
early-stage companies to share in approximately $54.5 million of
tax credit transfers approved by NJEDA for the 2020 period.
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
DefenCath™, a novel, antibacterial and antifungal solution designed
to prevent costly and life-threatening bloodstream infections
associated with the use of central venous catheters in patients
undergoing chronic hemodialysis. DefenCath has been designated by
FDA as Fast Track and as a Qualified Infectious Disease Product,
which provides an additional five years of marketing exclusivity,
which will be added to the five years granted to a New Chemical
Entity upon approval of a New Drug Application (NDA). The NDA was
filed with FDA and the Company has been informed in a Complete
Response Letter (CRL) that approval requires resolution of
deficiencies at the third-party manufacturing facility. CorMedix
also intends to develop DefenCath as a catheter lock solution for
use in oncology and total parenteral nutrition patients. It is
leveraging its taurolidine technology to develop a pipeline of
antimicrobial medical devices, with 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. Neutrolin® is CE Marked and marketed in
Europe and other territories as a medical device. 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 DefenCath development path; the resources needed to
secure approval of the new drug application for DefenCath from the
FDA, including manufacturing at a third-party facility; 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
DefenCath/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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