On November 15, 2022 Soligenix, Inc. (Nasdaq: SNGX) (Soligenix or the Company), a late-stage biopharmaceutical company focused on developing and commercializing products to treat rare diseases where there is an unmet medical need, reported that it has received preliminary approval for a tax credit from the New Jersey Economic Development Authority’s (NJEDA) New Jersey Technology Business Tax Certificate Transfer program (Press release, Soligenix, NOV 15, 2022, View Source [SID1234624100]). As a result, the Company anticipates being able to transfer this credit and receive approximately $1.2 million in net proceeds.
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"This is our thirteenth year receiving Net Operating Loss (NOL) funding," stated Christopher J. Schaber, PhD, President and Chief Executive Officer of Soligenix, "Over this time period, we have received nearly $9 million in non-dilutive NOL funding that has allowed us to advance and expand our rare disease pipeline. Before the end of this year, we will file our new drug application (NDA) with the U.S. Food and Drug Administration for HyBryte (synthetic hypericin) in the treatment of cutaneous T-cell lymphoma (CTCL), as well as initiate a Phase 2a clinical study with SGX302 (synthetic hypericin) for the treatment of mild-to-moderate psoriasis."
Dr. Schaber continued, "As we are always looking for non-dilutive ways to fund our company, we are once again very pleased with NJEDA’s continued support of its biotechnology industry. With over $16 million in cash, not including our non-dilutive funding, we remain focused on advancing towards U.S. commercialization of HyBryte in CTCL where peak annual net sales are expected to exceed $90 million, with the total addressable worldwide market estimated at approximately $250 million annually."
This competitive NJEDA program enables approved technology and biotechnology businesses to sell their unused NOL Carryovers and unused Research and Development (R&D) Tax Credits to unaffiliated, profitable corporate taxpayers in the state of New Jersey. This allows businesses with NOLs to turn their tax losses and credits into cash proceeds to fund additional R&D, purchase equipment and/or facilities, or cover other allowable expenditures. The NJEDA determines eligibility for the program, the New Jersey Division of Taxation determines the value of the available tax benefits (NOLs and R&D Tax Credits), and the New Jersey Commission on Science and Technology evaluates the technology and its viability. The State of New Jersey was the originator of this program and the first state to implement and fund it.