NOL Program Supports CorMedix Inc. as it Nears Major Inflection Point in Development of Lead Product
Under the direction of CEO Khoso Baluch, CorMedix Inc. is scaling up development of Neutrolin® with support from the NOL Program.
TRENTON, N.J. (June 13, 2019) – Berkeley Heights-based CorMedix Inc. (NYSE American: CRMD) rang the closing bell at the New York Stock Exchange on Monday, June 10 in celebration of the successful Phase 3 results of its lead investigational product, Neutrolin®, for use in hemodialysis patients requiring central venous catheters. The biotechnology company credits New Jersey’s Technology Business Tax Certificate Transfer Program, more commonly known as the Net Operating Loss (NOL) Program, with providing growth capital necessary to continue development of Neutrolin®.
Jointly administered by the New Jersey Economic Development Authority (NJEDA) and the New Jersey Department of Treasury’s Division of Taxation, the NOL Program enables eligible technology and life-sciences companies to sell New Jersey net operating losses and unused research and development tax credits to unrelated profitable corporations for cash. Emerging technology and life sciences companies in the Garden State have less than three weeks left to apply before the June 30 deadline for this year’s program. The application can be found at https://www.njeda.gov/nol.
For more than two decades, the NOL Program has been heralded as a lifeline for companies that have not yet reached profitability.
“The funding that we received through the NOL Program is non-dilutive, which means that this working capital allows us to continue to work toward commercialization without issuing stock in return for the funding,” CorMedix Chief Executive Officer Khoso Baluch said.
Khoso describes Neutrolin® as a novel, non-antibiotic antimicrobial solution designed to prevent costly and dangerous bloodstream infections associated with the use of central venous catheters. The U.S. Food and Drug Administration (FDA) has designed both a Fast-Track designation and a Qualified Infectious Disease Product Designation (QIDP) as recognition of Neutrolin®’s potential to fulfill an unmet need for medical care. With QIDP, Neutrolin® will have five years of market exclusivity in addition to the five years of exclusivity it will obtain upon approval as a new chemical entity. CorMedix currently has 10 employees in New Jersey but expects a significant increase in the next several years.
When asked why CorMedix chose to grow in New Jersey, Baluch pointed to the state’s ecosystem of large pharmaceutical companies and smaller biotechnology businesses. He also stressed that New Jersey offers his company “the right talent pool of people” to further develop its pipeline of products, as well as the abundance of resources, such as the NOL Program.
“The NOL Program is often cited by early-stage companies as a highly useful resource and one of the biggest advantages of locating in the Garden State,” NJEDA CEO Tim Sullivan said. “Through existing and proven resources like the NOL Program, coupled with new programs and initiatives currently being developed for emerging technology and life sciences companies, NJEDA continues to work in support of Governor Murphy’s vision of reclaiming New Jersey’s role as a leader in innovation.”
CorMedix was one of 49 companies to participate in the NOL Program in 2018.