Replies to post #225225 on Avid Bioservices Inc (CDMO)

[biopharm]

The thing I like most about your answer.....

(Please remember or be aware that I have a weird sense of humor)


TAX BREAKS!!!!!!!!!!

Who cares???? We don't pay any takes because don't make any money

Here's a big LOL

: ) BCS, I like the humor and I think we can agree that the last laughs will have been my the many long PPHM shareholders... though think about this:

What if one Big Pharma or a CALICO does give Peregrine $5 Billion credit? How much will Peregrine draw down on that credit and how much is taxed?.....now those tax credits come into play and Peregring and K&L Gates can figure out a plan to spend just enough each year (new manufacturing plant... etc..etc) all to minimize taxes each year. I'm sure the plan is already rolling out and I found it interesting that CA allows tax credits for "upgrades.." of tenants manufacturing facilities/site so I see how Peregrine and landlord fully agreed to certain $$ for upgrades since they both will benefit. I still say a $200 Million manufacturing facility can be had by Peregrine... with full tax credits given out via FDA and town they decide to build.

http://www.business.ca.gov/Portals/0/AdditionalResources/Reports/CA%20Economic%20Development%20Initiative.July%202013.pdf

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Pharmaceutical companies developing an orphan drug to treat an uncommon disease may be able to take the research credit for qualified research expenses or the orphan drug credit for development costs attributable to qualified clinical testing incurred in developing the drug.

The orphan drug credit is available for qualifying costs incurred between the date the Food and Drug Administration (FDA) designates a drug as an orphan drug and the date the FDA approves the drug for patients. The research credit can be claimed for development costs for a drug that are qualified research expenses regardless of FDA designation or approval of the drug.

http://www.aicpa.org/publications/taxadviser/2014/october/pages/korniakov_oct14.aspx

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So, as long as companies are attempting to develop new and improved products, product lines, manufacturing processes, or software, they could be eligible.

http://www.pharmexec.com/refuting-rd-tax-credit-myths

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