ThromboGenics to Benefit From Positive Ruling Regarding Patent Income Deduction
LEUVEN, Belgium, June 22, 2012 /PRNewswire/ --
Effective tax rate to be reduced significantly
ThromboGenics NV (Euronext Brussels: THR), a biopharmaceutical company focused on developing innovative ophthalmic medicines, today announced that the Belgian tax authorities have granted the Company a positive ruling enabling it to benefit from the "patent income deduction regime" and, therefore, from a reduced tax rate for all patent-related ocriplasmin income.
The patent income deduction will apply to ThromboGenics' anticipated sales of ocriplasmin in the U.S. through its own commercial organization, to the extent that the revenues relate to the ocriplasmin patents. It will also apply to all upfront and milestone payments and royalties that ThromboGenics has or could receive from Alcon, its partner for the commercialization of ocriplasmin outside the U.S. As a result of this ruling ThromboGenics can exempt 80% of this qualifying patent-related income from the standard rate of Belgian corporate tax, after deducting depreciation of the ocriplasmin patents and certain royalty payments. As a result, the patent income deduction will lead to the Company's effective corporate tax rate being significantly lower than the standard Belgian corporate tax rate of 33.99%.
Chris Buyse, CFO of ThromboGenics, said: "Today's ruling is a very positive development for ThromboGenics and its shareholders. The patent income deduction regime is one of the Belgian government's key policies for promoting the development and competitiveness of research and development-based industries such as biotechnology. We are very pleased that we can benefit from this important government incentive to develop IP in Belgium starting in 2012 and that our tax rate will continue to be reduced significantly as we look to grow the global sales of ocriplasmin, in conjunction with our partner Alcon."
About the Belgian Patent Income Deduction
The patent income deduction regime was introduced by the Belgian government in 2007 to encourage Belgian companies to play an active role in patent research and development, as well as patent ownership.
The regime allows Belgian companies to deduct 80% of their qualifying patent income from their taxable income leading to a reduction in their maximum corporate tax rate for this income stream to 6.8%, i.e. 20% of the Belgian statutory corporate tax rate of 33.99%.
The patent income deduction applies to any licensing income (upfront payments, milestones and royalties) and to the portion of the sales price of a product sold directly that is considered to relate to the product's patents (embedded royalty). Under the legislation, depreciation of purchased patents and royalties due on the in-licensed patents should be deducted from the qualifying patent income before applying the 80% deduction.
ThromboGenics is a biopharmaceutical company focused on developing and commercializing innovative ophthalmic medicines. The Company's lead product, ocriplasmin, has successfully completed two Phase III clinical trials for the pharmacological treatment of symptomatic Vitreomacular Adhesion (VMA), otherwise termed Vitreomacular Traction (VMT), including when associated with macular hole. The MAA for ocriplasmin has been accepted for review in Europe and the BLA has been resubmitted in the U.S. Ocriplasmin is in Phase II clinical development for additional vitreoretinal conditions.
In March 2012, ThromboGenics signed a strategic partnership with Alcon (Novartis) for the commercialization of ocriplasmin outside the United States. Under this agreement, ThromboGenics could receive up to a total of €375 million in up-front and milestone payments, plus an attractive level of royalties on Alcon's net sales of ocriplasmin. ThromboGenics and Alcon intend to share the costs equally of developing ocriplasmin for a number of new vitreoretinal indications.
ThromboGenics is also developing TB-403, a novel antibody therapeutic, in collaboration with BioInvent International, for cancer and non-cancer, including ophthalmology, indications.
ThromboGenics is headquartered in Leuven, Belgium. The Company is listed on the NYSE Euronext Brussels exchange under the symbol THR. More information is available at http://www.thrombogenics.com.
Important information about forward-looking statements
Certain statements in this press release may be considered "forward-looking". Such forward-looking statements are based on current expectations, and, accordingly, entail and are influenced by various risks and uncertainties. The Company therefore cannot provide any assurance that such forward-looking statements will materialize and does not assume an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information concerning risks and uncertainties affecting the business and other factors that could cause actual results to differ materially from any forward-looking statement is contained in the Company's Annual Report.
This press release does not constitute an offer or invitation for the sale or purchase of securities or assets of ThromboGenics in any jurisdiction.
No securities of ThromboGenics may be offered or sold within the United States without registration under the U.S. Securities Act of 1933, as amended, or in compliance with an exemption therefrom, and in accordance with any applicable U.S. state securities laws.
For further information please contact:
David Dible/ Nina Enegren/ Sita Shah
The Trout Group
Todd James, Director
Simon Harnest, Associate
SOURCE ThromboGenics NV