Here is a nice update from GEN on the tax credit portion of the Patient Protection and Affordable Care Act (i.e. Healthcare reform bill) passed in March. As expected, participation was brisk with up to $1 B in grants or tax credits up for grabs.
According to GEN, the average applicant applied for help with 2 or 3 projects. There was an average claim for each Qualifying Therapeutic Discovery Project (QTPD) of approximately $9 M per application. Maximum awards have been established at $5 M though. Of companies applying, the average number of employees was only 20 - thus the program truly is appealing to small life science groups.
Awards will not be announced until late October. At that time, we will know the total number of applicants and applications approved. Based on response so far, general observers believe the program should be renewed. It's felt that this type of funding for small companies can make the difference between successfully completing a project or pulling the plug.
Posted by Bruce Lehr September 2nd 2010.