Pharmaceutical manufacturers based in Australia are set to benefit from new legislation granting tax credits for research and development.
Replacing the R&D tax concession, which Innovation Minister Kim Carr described as outdated, the new R&D tax credit is expected to be worth $1.5 billion.
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“This will make Australian companies more innovative, productive and prosperous and position them to create jobs for the future.
“The R&D Tax Credit will focus on supporting genuine R&D and be worth $1.5 billion a year to industry,” the minister said.
Medicines Australia chief executive Dr Brendan Shaw said it had the potential to make Australia more attractive to pharmaceutical firms developing new medicines.
Dr Shaw said the legislation provides both local and international companies with an additional incentive to invest in R&D in Australia.
“This could be a massive opportunity for the pharmaceutical and biotech industries in this country,” Dr Shaw said.
“All indications are that the new program will help bring global investment in pharmaceuticals R&D to Australia, in large part by reducing the cost of conducting eligible R&D in this country.
“The bottom line is that this new program will reduce the net cost of undertaking R&D in Australia and make us more globally competitive.
“We look forward to continue working with Government to ensure this program delivers tangible benefits to companies who bring R&D investment to Australia.”
Meanwhile Sigma Pharmaceuticals general counsel and company secretary Sue Morgan-Dethick announced chief financial officer Mark Smith had resigned from his position with immediate effect yesterday.
KPMG partner Mark Watson will act in the role of CFO until the board appoints a replacement.
Mr Smith’s resignation follows last month’s announcement that chief executive and managing director Elmo de Alwis is to step down after 33 years with the company.
