Oxygen Bioterapeutics (Nasdaq: OXBT) will receive a $245,000 boost for its development of a brain injury treatment through a federal grant.
OxyBio’s Oxycyte was selected for federal support by the Department of Health and Human Services through the Patient Protection and Affordable Care Act.
Some $1 billion in federal funding was available, with the money intended to help underwrite the costs of drug development.
The legislation targeted firms with fewer than 250 employees. Grants were available for up to 50 percent for expenses directly related to drugs selected for the program.
Oxycyte is designed to be a treatment for traumatic brain injury and spinal cord injury.
"Tax credits such as this are vital to the economic viability of development stage biotechnology companies such as Oxygen Biotherapeutics," said Chris Stern, the company’s chairman and chief executive officer. "We intend to reinvest this money in support of our ongoing R&D efforts for Oxycyte PFC."
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