The Motley Fool

Why the Bionomics share price is up 13% today

The Bionomics Ltd (ASX: BNO) share price rocketed 13% in afternoon trade after the biotech researcher announced it has received a $6.5 million tax refund from the Australian government. In order to encourage research and development in Australia’s biotechnology industry the government offers a tax offset of up to 43.5% for eligible companies.

According to its website Bionomics is a biopharmaceutical company dedicated to “making better treatments for cancer, central nervous system disorders such as anxiety, depression and Alzheimer’s disease”.

While the stock is up 13% today to 12 cents, back on October 2 2018 it crashed 69% after revealing that a Phase II trial for its BNC210 drug for the treatment of post traumatic stress disorder did not meet its primary endpoint.

For the quarter ending September 30 2018, Bionomics posted an operating cash loss of $8.25 million, but after placing some shares to private investors reports it now has “12 months cash runway”.

Motley Fool contributor Yulia Mosaleva has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.