Advaxis, Inc. (NASDAQ:ADXS) has received preliminary approval for a $2.7 million tax credit from the New Jersey Economic Development Authority’s (NJEDA) New Jersey Technology Business Tax Certificate Transfer (NOL) program. The company anticipates it will be able to transfer this credit and receive more than $2.5 million in cash by the end of 2016.
This competitive program – administered by the NJEDA – enables companies to sell New Jersey net operating losses and R&D tax credits for at least 80 percent of the value of the tax benefits, up to a maximum lifetime benefit of $15 million per business. This allows technology and biotechnology companies with NOLs to turn their tax losses and credits into cash proceeds to fund more R&D, buy equipment and/or facilities, or cover other allowable expenditures. Advaxis is one of 40 emerging companies to share in more than $35 million in funding this year.
“The EDA’s NOL program is an innovative funding mechanism that enables companies like Advaxis to grow and succeed here in New Jersey,” said Daniel J. O’Connor, CEO of Advaxis. “This funding helps us add jobs, laboratory and manufacturing facilities to support our clinical development programs and develop much-needed immuno-oncology therapeutics for patients with cancer.” (Original Source)
Despite the good news, Advaxis shares are currently trading down 6.33% to $9.17. ADXS has a 1-year high of $16.30 and a 1-year low of $5.21. The stock’s 50-day moving average is $11.09 and its 200-day moving average is $9.67.
On the ratings front, Advaxi has been the subject of a number of recent research reports. In a report issued on September 8, Jefferies analyst Biren Amin reiterated a Buy rating on ADXS, with a price target of $24, which implies an upside of 145% from current levels. Separately, on August 3, Barclays’ Jonathan Eckard reiterated a Buy rating on the stock and has a price target of $20.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Biren Amin and Jonathan Eckard have a total average return of 8.5% and -5.9% respectively. Amin has a success rate of 53.2% and is ranked #360 out of 4182 analysts, while Eckard has a success rate of 35% and is ranked #3710.
Advaxis, Inc. is a clinical-stage biotechnology company, which intends to develop immunotherapies for cancer and infectious diseases. The company’s platform technology is designed to generate a comprehensive immune response by serving as its own adjuvant, directing antigen presentation, increasing tumor infiltrating killer T-cells, and decreasing Tregs/MDSCs in the tumor.