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reMYND receives a positive tax ruling on the income from its Roche collaboration

31/01/2012

reMYND NV has received a positive ruling from the Belgian Tax Authorities. The ruling stipulates that the upfront license fee, all milestone payments and royalties linked to Roche Basel will qualify for the patent income deduction under Articles 205 WIB 92.

In September 2010, Roche and reMYND have entered into a strategic alliance to develop first-in-class disease-modifying treatments, which could slow down neurodegeneration in Parkinson’s and Alzheimer’s patients by inhibiting α-synuclein and tau toxicity. The collaboration focuses on several of reMYND’s pre-clinical small molecule programmes, covered by a granted patent. Under the agreement, reMYND could receive milestone payments, additional FTE payments and royalties on resulting net sales.

The Belgian patent income deduction legislation (Articles 205 WIB 92) wants to foster the local investments in innovation and the monetization of such innovation, by providing a beneficial treatment of revenues from a granted patent. Only twenty percent of such revenues needs to be recognised as taxable income, while the remaining eighty percent is tax exempt.

reMYND and its advisors have applied for a tax ruling for the Roche upfront, milestone and royalty payments under the Belgian patent income deduction legislation, and have obtained a positive ruling. Koen De Witte, Managing Director of reMYND commented “We are very happy with this ruling as it recognizes our underlying business model aimed at developing breakthrough innovations, and generating revenues by monetizing on a strong intellectual property position. As such, this ruling will allow us to keep more cash in the company, which we can devote to other innovative programs.”

About reMYND

reMYND, a spin-off company of Leuven University, Belgium, actively drives the development of disease-modifying treatments, both through its own Drug Discovery & Development and as a Contract Research Organization (CRO):

• reMYND’s own Drug Discovery & Development unit focuses entirely on disease-modifying treatments with the aim to decelerate – or even stop – cellular degeneration found in protein misfolding disorders, such as Alzheimer’s disease (AD), Parkinson’s disease (PD), Type 2 Diabetes Mellitus (T2DM) and many orphan diseases. As such, reMYND responds to a clear unmet medical need, as all marketed treatments and the majority of the products under development world-wide are aimed mainly to mitigate symptoms.
  reMYND’s pipeline primarily consists of disease-modifying programs counteracting pathological tau, synuclein and IAPP-toxicity for AD, PD and T2DM, respectively.
  In September 2010, Roche and reMYND announced their strategic alliance to further develop and commercialise some of reMYND’s novel therapeutics that could slow down neurodegeneration in Parkinson’s and Alzheimer’s patients. Under that agreement, reMYND could receive over half a billion Euros in milestone payments.
• reMYND’s CRO offers an extensive portfolio of preclinical in-vivo testing of experimental Alzheimer therapies using its proprietary transgenic mouse models. reMYND’s transgenics are based on the APP-London mutation, and include double-transgenic APP*PS1 and APP*TAU models. reMYND has ample expertise in testing 3rd party treatments targeting the β-amyloid pathway for Alzheimer’s disease, and as such has provided in-vivo proof-of-concept data for several candidate drugs that reMYND’s clients have currently in clinical development. A recent diversification of the services offering with a TAU and APP*TAU model now allows for helping our clients to assess the in-vivo effects of experimental therapies directed at tau-o-pathies and the interplay of β-amyloid and tau, respectively.

reMYND has been substantially supported by grants from IWT (Flanders, Belgium) and from the Michael J Fox Foundation. In 2009, reMYND received the 1st Award for Company with an Exceptional Relevance to Society.

Source: reMYND