Exhibit
99.1
CORMEDIX COMPLETES SALE OF $5.4 MILLION OF NOL TAX BENEFITS THROUGH
NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY PROGRAM
Berkeley Heights, NJ – April 17, 2019 – CorMedix Inc. (NYSE American: CRMD),
a biopharmaceutical company
focused on developing and commercializing therapeutic products for
the prevention and treatment of infectious and inflammatory
disease, today announced that it has completed the previously
announced sale of $5.4 million of NOL tax benefits to two
unrelated, profitable New Jersey corporations through the New
Jersey Economic Development Authority’s New Jersey Technology Business Tax Certificate
Transfer program for State Fiscal Year 2018. As a result, the
Company has received approximately $5.1 million in cash from the
sale of these NOL tax benefits.
“We are pleased to have closed on this transaction,”
said Khoso Baluch, CorMedix CEO. “The funding bolsters our
cash runway as we continue to move the Neutrolin® development
program forward.”
The New Jersey Technology Business Tax Certificate Transfer (NOL)
program enables qualified, unprofitable NJ-based technology or
biotechnology companies with fewer than 225 U.S. employees
(including parent company and all subsidiaries) to sell a
percentage of net operating losses and research and development
(R&D) tax credits to unrelated profitable corporations. NOLs
and R&D tax credits may be sold for at least 80 percent of
their value, up to a maximum lifetime benefit of $15 million per
business. This allows qualifying technology and biotechnology
companies with NOLs to turn their tax losses and credits into cash
proceeds to fund growth and operations, including research and
development or other allowable expenditures.
About CorMedix
CorMedix Inc. is a biopharmaceutical company focused on developing
and commercializing therapeutic products for the prevention and
treatment of infectious and inflammatory diseases. The Company is
focused on developing its lead product Neutrolin®, a novel,
non-antibiotic antimicrobial solution designed to prevent costly
and dangerous bloodstream infections associated with the use of
central venous catheters, currently in Phase 3 development for
patients undergoing chronic hemodialysis. Such infections cost the
U.S. healthcare system approximately $6 billion annually and
contribute significantly to increased morbidity and mortality.
Neutrolin has FDA Fast Track status and is designated as a
Qualified Infectious Disease Product, which provides the potential
for priority review of a marketing application by FDA and
allows for 5 additional years of QIDP market exclusivity in the
event of U.S. approval. Neutrolin is already marketed as a CE
Marked product in Europe and other territories. In parallel,
CorMedix is leveraging its taurolidine technology to develop a
pipeline of antimicrobial medical devices, with active programs in
surgical sutures and meshes, and topical hydrogels. The
company is also working with top-tier researchers to develop
taurolidine-based therapies for rare pediatric cancers. For
more information, visit: www.cormedix.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties. All statements, other
than statements of historical facts, regarding management’s
expectations, beliefs, goals, plans or CorMedix’s prospects,
future financial position, financing plans, future revenues and
projected costs should be considered forward-looking. Readers are
cautioned that actual results may differ materially from
projections or estimates due to a variety of important factors,
including: risks relating to the effect of the
recently-effected reverse stock split on the Company’s stock
price and its overall market capitalization; the resources needed to terminate the Phase 3
trial and the costs and time needed to submit a new drug
application to the FDA; the risks and uncertainties associated with
CorMedix’s ability to manage its limited cash resources and
the impact on current, planned or future research, including the
continued development of Neutrolin and research for additional uses
for taurolidine; obtaining additional financing to support
CorMedix’s research and development and clinical activities
and operations; risks related to obtaining FDA approval of the new
drug application for Neutrolin; relying on preclinical results that
may not be indicative of success in clinical trials and might not
be replicated in any subsequent studies or trials; and the ability
to retain and hire necessary personnel to staff our operations
appropriately. These and other risks are described in greater
detail in CorMedix’s filings with the SEC, copies of which
are available free of charge at the SEC’s website at
www.sec.gov or upon request from CorMedix. CorMedix may not
actually achieve the goals or plans described in its
forward-looking statements, and investors should not place undue
reliance on these statements. CorMedix assumes no obligation and
does not intend to update these forward-looking statements, except
as required by law.
Investor Contact:
Dan
Ferry
Managing
Director
LifeSci
Advisors
617-535-7746