Due to the need for constant product and process developments, the cost of R&D for the biotech industry is increasing on a yearly basis, and in many cases can reach up to 15% of total sales. Political pressures to keep product costs low for the consumer, combined with the ROI derived from patents being reduced once they expire, means lowering R&D costs has become critical to remaining competitive in an increasingly fragmented market.
While most biotech companies are already performing eligible activities, identifying and documenting them according to government requirements can be challenging. Claiming the R&D tax credit can yield significant funding towards past and future innovation and development, but the activities must be properly positioned and supported for a claim to be accepted.
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