Industry: Biotechnology & Pharmaceuticals
Company Size: 38 Employees
Annual Revenue: $12M
R&D Tax Credit Savings: $275,000
Challenge in Pharmaceutical
A small pharmaceutical research company developing nutraceuticals and over-the-counter (OTC) treatments was investing heavily in formulation development, clinical stability testing, and bioavailability improvements. Their scientists regularly experimented with natural compound extraction, extended-release formulas, and enhanced absorption technologies to improve product effectiveness. However, they were unaware that these efforts qualified for R&D tax credits in the pharmaceutical industry.
Despite conducting extensive trials and analytical testing, they had never formally tracked their work for tax credit eligibility related to their efforts.
Our Approach
1). R&D Activity Identification: Identified qualifying efforts such as formulation refinement, efficacy testing, and stability studies.
2). Expense Documentation: Captured wages for biochemists, formulation scientists, and regulatory specialists, as well as costs for raw materials and third-party testing.
3). Audit-Ready Study: Developed an IRS-compliant report detailing their experimental design, lab processes, and clinical trial phases.
4). Ongoing R&D Strategy: Implemented a structured tracking system to ensure continued R&D credit eligibility in future years for pharmaceutical research.
Outcome
- Secured a $275,000 R&D tax credit, reducing tax burdens and increasing cash flow.
- Allowed reinvestment in additional formulation research and regulatory compliance efforts as a pharmaceutical entity.
- Created a repeatable process for tracking qualifying R&D activities, ensuring long-term tax credit optimization for pharmaceutical companies.
Unlock Your R&D Tax Credits Today
At Credits Granted, we help biotech and pharmaceutical companies claim R&D tax credits with full IRS compliance. Want to see if your company qualifies? Schedule a Free Consultation today.
