The low interest rate R&D loan granted by the Victorian government will accelerate TALi’s push into global markets.

Digital health company TALi Digital (ASX:TD1), has just received a major boost to its commercialisation efforts, after being granted a $500k R&D funding facility by the Victorian government today.

The facility was approved by the Treasury Corporation of Victoria, as part of the Victorian Government’s R&D loan initiative administered by Invest Victoria.

These R&D loans support innovative Victorian small to medium enterprises (SMEs) who are investing in R&D activities to develop products, services or technologies vital to the State’s future economy.

TALi will receive the $500k funds in two tranches – with the first tranche of $300,000 already received; and the second one of up to $203,744 to be received by the end of March 2022.

The funds will be used to support the company’s commercialisation activities, including the one related to its recently signed agreement with US-based Akili.

The partnership with Akili was a major step forward for TALi’s global footprint, which has the potential to deliver $51m in revenues along with annuity-based royalty payments.

The deal will also see both companies collaborate in developing a digital health solution to tackle Attention Deficit Hyperactivity Disorder (ADHD) diagnoses in children under 8 years of age.

Accelerating commercialisation milestones

A market leader with a first-mover advantage in the space, Akili has successfully commercialised a prescription-based digital health solution for ADHD.

Prior to commercialisation, the company’s EndeavorRx platform received regulatory backing from the US FDA, along with CE-mark accreditation from the European Medicines Agency.

Under the terms of the partnership, Akili will work directly with TALi’s team to develop its technology suite through additional clinical trials and regulatory approvals.

In doing so, TALi will leverage Akili’s detailed knowledge of the US market and its own success in commercialising the EndeavourRX through a detailed regulatory framework.

The agreement also has significant expected milestone payments to TALi attached to it, and delivery of milestones ahead of schedule would expedite revenues to TALi.

The loan received today will help towards achieving those milestones quicker, as the interest is based on the State Treasury’s published 11am loan interest rate, currently at a lowly 0.265% per annum.

TALi says that repayments will be timed to coincide with the receipt of its FY23 R&D tax offset refund, which means loan principal and interest payments could be entirely covered by those tax rebates.

TALi is a digital health company that delivers diagnostic and therapeutic solutions to enhance cognitive function and behaviour.

The company has built a patented platform technology targeting cognitive attention skills during early childhood via its game-based screening (DETECT) and training (TRAIN) modules.

This article was developed in collaboration with TALi Digital, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.