Attached files
file | filename |
---|---|
8-K - CURRENT REPORT - CorMedix Inc. | crmd_8k.htm |
EXHIBIT 99.1
CORMEDIX RECEIVES APPROVAL TO SELL $5.4 MILLION OF NOL
TAX
BENEFITS THROUGH THE NEW JERSEY ECONOMIC DEVELOPMENT
AUTHORITY PROGRAM
Berkeley Heights, NJ –
December 10, 2018 – 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
the New Jersey Economic Development Authority (NJEDA) has approved
the Company’s application to participate in the New Jersey
Technology Business Tax Certificate Transfer (NOL) program for
State Fiscal Year 2018. The approval will allow CorMedix to
transfer approximately $5.4 million of the total $6.1 million in
available tax benefits to an unrelated, profitable New Jersey
corporation in return for approximately $5.0 million in cash, which
is anticipated by the end of 2018. Closing is subject to NJEDA's
typical closing conditions, which are in
process.
“We
are extremely pleased to receive such a large allocation from this
important program,” said Khoso Baluch, CorMedix President
& CEO. “The program size and number of qualified
applicants varies from year to year, so the allocation amount
isn’t known until NJEDA notification is received. The funding
will help us prepare for the next stage of our Neutrolin
development program.”
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. CorMedix is one of 48
emerging companies to share in approximately $60 million of tax
credit transfers approved by NJEDA this year.
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, currently in Phase 3 development for
patients undergoing chronic hemodialysis. 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. 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 risk of closing the NJEDA tax certificate transfer
program; the risk of closing the recently announced convertible
note financing; the resources needed to terminate the Phase 3 trial
and the costs and time needed to submit a new drug application 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; risks related to obtaining FDA approval of the new
drug application for Neutrolin; relying on preclinical results that
may not be 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. 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
Ferry
Managing
Director
LifeSci
Advisors
617-535-7746