Alterity Therapeutics Ltd Banks A$3.98M R&D Refund for MSA Clinical Programs
Alterity banks A$3.98m R&D tax refund to fuel MSA clinical programs
Alterity Therapeutics (ASX: ATH, NASDAQ: ATHE) has received its research and development tax refund for the 2025 financial year, totalling A$3,982,992. The refund arrives under the Australian Government’s R&D Tax Incentive.
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Breaking down the refund
The A$3,982,992 refund includes an interest component of A$43,117. The payment is received under the Australian Government’s R&D Tax Incentive, which provides eligible companies with a refundable tax offset of up to 43.5%. According to the announcement, the funds will support continued development of Alterity’s clinical programs.
| Item | Detail |
|---|---|
| Total refund received | A$3,982,992 |
| Interest included | A$43,117 |
| Financial year | FY2025 |
| Scheme | Australian Govt R&D Tax Incentive |
| Offset rate | Up to 43.5% refundable |
Understanding the R&D Tax Incentive
The Australian R&D Tax Incentive is a government programme that returns cash to eligible companies conducting qualifying research. Firms that meet the criteria can receive a refundable tax offset of up to 43.5% on eligible R&D spending.
Non-dilutive funding is particularly valued by investors because it strengthens the balance sheet without requiring the company to issue new shares.
What the funding supports: ATH434 and the road to Phase 3
Alterity is a clinical-stage biotechnology company focused on developing disease-modifying therapies for Multiple System Atrophy (MSA) and related Parkinsonian disorders. MSA is a rare and rapidly progressive neurodegenerative disease.
According to the announcement, the Company is preparing to initiate a Phase 3 pivotal trial in MSA. Its lead asset, ATH434, has demonstrated clinically meaningful efficacy in a randomised, double-blind, placebo-controlled Phase 2 clinical trial in participants with MSA. Alterity has also reported positive data in its open label Phase 2 clinical trial in participants with advanced MSA.
FDA written minutes from the End-of-Phase 2 meeting confirmed that a single pivotal Phase 3 trial, supported by confirmatory evidence from the completed Phase 2 study, can support a New Drug Application filing for ATH434, with trial activities on track to initiate by year-end 2026.
ATH434 Phase 2 trial results showed the 50 mg dose achieving a statistically significant 41% relative treatment effect versus placebo on the MuSyCA composite scale at Week 52, with a separate analysis on modified UMSARS Part I corroborating a 53% relative treatment effect across independent outcome measures.
Beyond its lead asset, the Company operates a broad drug discovery platform generating patentable chemical compounds to treat the underlying pathology of neurological diseases.
Pipeline highlights:
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ATH434, lead asset with positive Phase 2 efficacy (double-blind, placebo-controlled)
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Open label Phase 2 with positive data in advanced MSA
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Phase 3 pivotal trial in preparation
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Drug discovery platform generating patentable compounds for neurological disease
From the announcement
“The refund received will provide important funding for continued development of Alterity’s clinical programs.”
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Why it matters for investors
The near-A$4 million refund strengthens Alterity’s position as it prepares for a Phase 3 pivotal trial targeting a rare and rapidly progressive disease. The refund will provide important funding for continued development of Alterity’s clinical programs.
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