Latest news with #researchanddevelopment
Geek Wire
22-05-2025
- Business
- Geek Wire
Tech Alliance study: R&D imbalance threatens state's innovation sector as public investment lags
Washington patent filings fell 23.4% from 2018 to 2023 — nearly five times the national average decline — despite the state's strong investment in research and development. Source: USPTO / Technology Alliance Benchmarking Report Washington ranks among the nation's top three states in business R&D spending, but weaker public investment is threatening the innovation ecosystem — a gap reflected in declining patent activity and limited startup diversity. That is one of the key takeaways in the 2025 Benchmarking Report from the Technology Alliance, which says Washington is relying too heavily on private companies to drive innovation, while public investment and basic research fall behind. Washington leads most states in private-sector research spending, with business R&D accounting for 98.6% of total R&D investment. That strength is not matched by academic and federal contributions, which make up less than 1.5% combined. Patent filings in Washington state have dropped 23% in five years, and the number of patents issued has fallen nearly 59%, raising concerns about the long-term output of the state's innovation pipeline. The report also notes that Washington's startup activity remains heavily concentrated in IT and healthcare, with fewer ventures emerging from basic science, clean energy, advanced materials, or other research-driven sectors. Washington's R&D spending climbed sharply after 2017 to reach 8% of state GDP by 2021. Source: Science & Engineering State Indicators / Technology Alliance Benchmarking Report That narrow focus, the report warns, could make the state less resilient to future economic cycles without greater investment in foundational research and public-sector support. Washington is in the top three states with R&D spending equal to 8% of the state's gross domestic product, said Chelsea Tucker, managing director at Accenture, presenting the findings at this week's Technology Alliance State of Technology Luncheon in downtown Seattle. 'We should be really proud of where we rank in R&D,' she said. 'When I read that, I really had to make sure my eyes weren't going cross. I think that's staggering.' However, as an indicator, she called the trends in patent filings a cause for concern. 'What do we need to do to guarantee that the organizations investing in R&D are motivated to continue?' Tucker said. 'I think we need to be introspective … to make sure that those R&D investments don't go down.' Chelsea Tucker, managing director at Accenture, presents findings from the 2025 Innovation Benchmarking Report at the Technology Alliance State of Technology Luncheon in Seattle. (Photo by Melissa Ponder for the Technology Alliance) The report calls for greater public investment in academic and federal research to help balance Washington's heavy reliance on private-sector R&D, while expanding support for basic research. The report also urges state leaders to maintain a competitive business environment to keep corporate R&D dollars in Washington and support continued economic growth. The report provided a backdrop for business and policy leaders — including Microsoft President Brad Smith — to call for renewed public investment and stronger innovation policy during the event. But the recommendations face a harsh reality of federal spending cuts and a shaky state economy. Washington is grappling with a $16 billion budget shortfall, leading to new business taxes and prompting the state to scale back key economic development programs. This year's version of the Benchmarking Report was authored by Ananya Yashasvi, the William H. Gates Sr. Fellow in Innovation and Entrepreneurship at the Technology Alliance, with guidance from Martin Stoddart, a managing director at Accenture. Accenture, the University of Washington, and Microsoft also contributed data and expertise to the report. See this year's report and past versions here.
Yahoo
16-05-2025
- Business
- Yahoo
Mersana Therapeutics Inc (MRSN) Q1 2025 Earnings Call Highlights: Strategic Restructuring and ...
Cash and Cash Equivalents: $102.3 million at the end of Q1 2025. Net Cash Used in Operating Activities: $29.3 million for Q1 2025. Collaboration Revenue: $2.8 million for Q1 2025, down from $9.2 million in Q1 2024. Research and Development Expenses: $18.3 million for Q1 2025, compared to $18.7 million in Q1 2024. General and Administrative Expenses: $8.9 million for Q1 2025, down from $11.6 million in Q1 2024. Net Loss: $24.1 million for Q1 2025, compared to $19.3 million in Q1 2024. Warning! GuruFocus has detected 5 Warning Signs with MRSN. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mersana Therapeutics Inc (NASDAQ:MRSN) has implemented a strategic restructuring plan to extend its cash runway into mid-2026, allowing for continued development of its key product, Emi-Le. The company reported promising clinical data for Emi-Le, particularly in patients with B7-H4 high tumors, showing an objective response rate (ORR) of 29% and a median progression-free survival (PFS) of 16 weeks. Enrollment in the expansion cohort for Emi-Le has progressed rapidly, indicating strong interest and potential for further clinical success. Mersana Therapeutics Inc (NASDAQ:MRSN) has adopted new proteinuria management guidelines, which are expected to improve treatment tolerability and maintain dose intensity. The company has a solid financial position with $102.3 million in cash and cash equivalents, supporting its operations into mid-2026 without relying on future milestone payments or collaborations. Mersana Therapeutics Inc (NASDAQ:MRSN) has reduced its workforce by about 55% and eliminated internal pipeline development efforts, which may impact future innovation and development capabilities. The company's collaboration revenue decreased significantly from $9.2 million in Q1 2024 to $2.8 million in Q1 2025, reflecting reduced revenue from partnerships with J&J and Merck KGaA. Despite restructuring efforts, Mersana reported a net loss of $24.1 million for Q1 2025, an increase from the $19.3 million net loss in the same period of 2024. The focus on breast cancer in clinical development may limit the exploration of Emi-Le's potential in other tumor types, as expansion efforts in ovarian and endometrial cancers have been deprioritized. The company faces challenges in managing proteinuria, a side effect of Emi-Le, which requires careful mitigation strategies to avoid treatment delays and maintain efficacy. Q: Can you expand on the high dose, especially regarding safety and the updated protocol? Will this be included in the ASCO update? A: Brian Deschuytner, CFO and COO, explained that the data shared at ASCO will be based on escalation and backfill only, not expansion. The 44.5 mg/m dose is distinct and higher than the 67.4 mg/m dose, ensuring meaningful exposure. The 44.5 mg/m dose showed effectiveness in tumor reduction, but proteinuria management is crucial to maintain treatment without interruptions. Q: How might the ASCENT 3 and ASCENT 4 studies impact your clinical development plans in the post topo setting? A: Brian Deschuytner noted that the earlier use of topo-1 ADCs could expand the post topo-1 patient pool, where Mersana's Emi-Le has shown activity. This development is positive for patients and the opportunity size Mersana is pursuing. Q: Could you comment on the types of patients who showed responses at the intermediate dose? Also, how effective have the proteinuria management strategies been? A: Martin Huber, CEO, stated that the two additional responses were in ACC 1 patients. The proteinuria management strategies are not expected to eliminate proteinuria but aim to manage its consequences. The company is confident in these efforts and will share more details in the second half of the year. Q: Are there additional dosing regimens being evaluated beyond the current ones in expansion? What can we expect from the upcoming ASCO presentation? A: Brian Deschuytner confirmed that the current two doses are the focus for expansion, with no plans for additional regimens. The ASCO presentation will focus on backfill and escalation data, not expansion data. Q: Could you provide more color on a potential pivotal study and the cutoff for B7-H4 expression? A: Martin Huber discussed the benefits of a randomized trial over a single-arm trial, including global filing opportunities and avoiding confirmatory trials. The B7-H4 expression cutoff is being refined in expansion, but 40-50% of patients are expected to be positive. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
09-05-2025
- Business
- Bloomberg
Tech Industry Warns US Investment Pledges Hinge on Research Tax Break
Major tech companies lobbying to salvage a tax deduction for research and development are warning they may pull back from high-profile pledges of new US investments if Congress doesn't fully reinstate the break. Big tech companies have pledged more than $1.6 trillion in investments in the US since Donald Trump took office, promising to build factories and data centers in alignment with Trump's push to build in America.
Forbes
08-05-2025
- Business
- Forbes
R&D Tax Credit Boost Shows Texas Is Not Resting On Low-Tax Laurels
Texas state capitol building in Austin getty Thanks to a flurry of legislative activity that took place in April, Tax Day could be less burdensome in the future for residents of a number of states. On April 28, Montana Governor Greg Gianforte (R) signed into law the largest income tax cut in his state's history. Just over a week later on May 6, the South Carolina House passed a bill that would put the state on track to having a flat 1.99% income tax rate, down from a 6.2% top rate today. That move in South Carolina came three weeks after the North Carolina Senate passed a budget that would cut the state's 4.25% flat tax to 1.99% in the coming years if revenue triggers are met. Three days before the North Carolina Senate passed that income tax-cutting budget, the Oklahoma Senate gave final approval to legislation that will gradually phase out the state income tax. In this era of heightened state tax competition, lawmakers in Texas recognize it's unwise for even a no-income-tax state to rest on its laurels. They demonstrated as much last week with the Texas Senate's unanimous passage of Senate Bill 2206, legislation that would both extend and strengthen the state's research & development tax credit. Senator Paul Bettencourt (R), sponsor of SB 2206, calls it a 'huge win for innovation.' 'We're increasing the R&D franchise tax credit from 5% up to 8.722% — and even higher to 10.903% for R&D with Texas universities and colleges,' Senator Bettencourt posted to X following the Texas Senate's 31-0 vote in favor of SB 2206. The bill now awaits consideration in the Texas House. Representative Charlie Geren (R) is sponsor of HB 4393, the House companion to SB 2206. 'For every $1 in R&D incentive, Texas gains $12.47 in Gross State Product over 20 years,' Senator Bettencourt added. 'This bill creates 6,662 new jobs annually, $445M in labor income, and $748M in GSP growth every year. SB 2206 ensures Texas remains a national leader in research, innovation, and job creation — making sure our economy keeps pace with the demands of the 21st-century.' 'Research and development (R&D) activities of private businesses, universities and the government are important for increasing innovation,' noted John Diamond, the director of the Center for Public Finance at Rice University's Baker Institute for Public Policy, in a 2024 paper. 'Sustained increases in economic growth and the standard of living will be primarily driven by technological innovation in the near future, making it imperative that Texas act to increase R&D investments.' Diamond points out that one way to do this is by 'extending and increasing the R&D tax credit,' which is what will happen if the Texas House passes HB 4393. 'R&D is so important to a healthy economy,' Jennifer Rabb, president of the Texas Taxpayers and Research Association, told the Austin American-Statesman . 'And without an extension of the credit, companies are going to choose to go elsewhere for those projects.' 'Texas' credit is on the low end of the spectrum for R&D tax incentives, with countries like China offering a 'super deduction' of 200% and states like California offering a 15% tax credit on qualified research expenditures and an extra 24% of research payments to public universities and their affiliate hospitals or cancer research centers,' the Statesman reported after the April 10 Senate Finance Committee hearing on SB 2206. 'Many other states, like Michigan and Arizona, offer 10%.' 'For those businesses, small entrepreneurial businesses that are startups that don't have income coming in, they would be able to take a credit off of their sales tax expenditures to use it or carry forward the credit to a time when they have profits coming in,' Glen Hammer, CEO of Texas Association of Business, told the Statesman , adding 'it's something that's available to all innovative companies in the state of Texas, regardless of their size.' The push to extend and boost the R&D tax credit in Texas coincides with the effort on Capitol Hill to reinstate full year one business expensing for R&D costs. The enactment of SB 2206/HB 4393 in Texas 'needs to be complemented with Congress ending the tax code's bias against research spending,' says Ryan Ellis, president of the Center for a Free Economy. 'For the whole history of the tax code, research expenses (which consist mostly of the wages paid to researchers) were deductible,' adds Ellis, an IRS-enrolled agent who also runs a tax preparation firm. 'As of 2023, research expenses incurred in one year must be slowly deducted. Congress is working as we speak to restore full research expensing, the neutral and correct tax policy which is also very pro-growth.' 'The United States treats research and development poorly compared to the rest of the world,' the Tax Foundation noted in an October 2024 paper. 'Historically, the US allowed companies to fully deduct R&D costs, but since 2022, companies must deduct R&D expenses across 5 years or 15 years. In real terms, the delay means companies only deduct around 89 percent of R&D costs, creating a tax penalty.' Researchers at the Tax Foundation, as illustrated by the below chart, have concluded that improving the tax treatment of R&D, in particular restoring full expensing of R&D costs, is among the most effective ways to promote economic growth. Percentage Change in the level of Long-Run GDP per Billion of Annual Conventional Revenue Cost Tax Foundation Congressional leaders are aiming to send a bill to the President's desk by this summer that would prevent the personal income tax cuts enacted in 2017 from expiring, while restoring full expensing of R&D, along with full expensing of other business costs. The Texas House Ways & Means Committee, meanwhile, will take up HB 4393 during a hearing on May 12. This eighty-ninth regular session of the Texas Legislature will conclude on June 2.
