R&D Tax Credit

Oxford Cannabinoid Tech.Holdings

30 January 2024

 

Oxford Cannabinoid Technologies Holdings plc

("OCTP" or the "Company")

 £1.275m HMRC R&D tax credit

Oxford Cannabinoid Technologies Holdings plc (LSE: OCTP), the biotech company developing prescription cannabinoid medicines, is pleased to announce that it has received confirmation of a £1.275m R&D tax credit from HMRC in respect of the financial year ended 30 April 2023.

The payment relates to the work carried out on OCTP's four drug development programmes during the financial year ended 30 April 2023. This included completing pre-clinical work on programme 1, OCT461201, and programme 2, OCT130401, which enabled OCTP to initiate Phase I clinical trials for programme 1 in the following financial year. OCTP announced successful completion of OCT461201's Phase I single ascending dose ("SAD") clinical trial in October 2023.

Harnessing the benefits of R&D tax credits is an important part of OCTP's strategy, during its programmes' pre-clinical and clinical stages. In line with this strategy, OCTP identifies opportunities for the maximisation of tax credits, wherever practicable, when selecting partners for its pre-clinical and clinical trials, and employs R&D tax specialists to utilise allowances and ensure compliance with the competent tax authorities. In this approach, OCTP aims to maximise its revenue streams and optimise its cash runway through continuous reinvestment in its programmes moving them along the glidepath towards regulatory approval and commercialisation.

Clarissa Sowemimo-Coker, Chief Executive Officer of OCTP, said:

"We are delighted to have confirmation of a £1.275m R&D tax credit from HMRC for work successfully undertaken during the financial year ended 30 April 2023. This is our strategy of maximising our revenue streams and tax credits in action, and receiving the full amount claimed is testament to the diligence, rigour, and hard work of our CFO Paul Smalley and his team. The tax credit is almost double the size of that which was remitted to the Company by HMRC in FY 2022, reflecting the significantly enhanced investment in research and development that we have made over the last 12 months and the tremendous progress the Company has made over the period. The merits of this R&D investment have shone through over the past year with the completion of OCT461201's Phase I SAD clinical trial and OCT130401 completing all its pre-clinical work."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).

The Directors of the Company accept responsibility for the content of this announcement.

Enquiries:

Oxford Cannabinoid Technologies Holdings plc	[phone]
Clarissa Sowemimo-Coker (CEO)	[e-mail]
Cairn Financial Advisers LLP
Emily Staples	[phone]
Jo Turner	[phone]
Axis Capital Markets Limited
Richard Hutchison	[phone]
Acuitas Communications	020 3745 0293 / 07799 767676
Simon Nayyar	[e-mail]
Arthur Dingemans	[e-mail]

About Oxford Cannabinoid Technologies Holdings Plc:

Oxford Cannabinoid Technologies Holdings plc ("OCTP") is the holding company of Oxford Cannabinoid Technologies Ltd (together the "Group"), a pharmaceutical Group developing prescription cannabinoid medicines initially targeting the US$ multi-billion global pain market.

OCTP currently has a portfolio of four drug development programmes. Its lead compound, OCT461201, will initially target neuropathic and visceral pain (including irritable bowel syndrome ("IBS") and chemotherapy induced peripheral neuropathy ("CIPN"). The global market for CIPN alone is currently forecast to reach US$1.17bn by 2028.

OCTP's drug development pipeline comprises both natural and synthetic compounds, and includes compounds targeting trigeminal neuralgia, a severe type of face pain, and cannabinoid derivatives targeting pain and potentially other therapeutic areas. Having established an exclusive licence agreement with Canopy Growth Corporation for their entire pharmaceutical cannabinoid derivative library, OCTP now has a portfolio of almost five hundred derivatives and intellectual property rights including fourteen patent families and associated research data.

OCTP has a clearly defined path to commercialisation, revenues and growth. The Group is developing drug candidates through clinical trials to gain regulatory approval (FDA/MHRA/EMA) that will enable medical professionals to prescribe them with confidence. OCTP's portfolio aims to balance risk, value and time to market, whilst ensuring market exclusivity around all its key activities.

 

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