Calypte receives $244,479 tax credit under QTDP program

Calypte Biomedical Corporation (Pink Sheets:CBMC), the developer, manufacturer and marketer of the Aware™ HIV-1/2 OMT (oral fluid) HIV test, announced today that it has been awarded a tax credit of $244,479 under U.S. Government's Qualifying Therapeutic Discovery Project (QTDP) program. 

The QTDP tax credit is provided under the new section 48D of the Internal Revenue Code, enacted as part of the Patient Protection and Affordable Care Act of 2010. The credit is targeted to therapeutic discovery projects that show a reasonable potential to prevent, diagnose, and treat acute and chronic diseases. Allocation of the credit also takes into consideration which projects show the greatest potential to create and sustain high-quality, high-paying U.S. jobs and to advance U.S. competitiveness in life sciences.

"I am pleased that Calypte has been recognized by this program for having the potential to significantly improve HIV testing and early diagnosis," said Adel Karas, Chairman and CEO of Calypte.

A leader in HIV diagnostics, Calypte intends to bring to the US market a rapid test for HIV-1/2 using oral fluid instead of blood. Rapid testing results in higher rates of linkage to care than laboratory testing and is widely preferred by patients, while oral fluid testing is less invasive, cheaper and safer than blood tests. Although all reactive rapid test results must be confirmed by laboratory testing, algorithms based on multiple rapid tests have been successfully used in other countries to provide a diagnosis which allows immediate initiation of treatment. Up to half of all clients do not receive their laboratory results, and infected persons who are unaware of their status are not only at increased personal risk through lack of treatment, but are also 3-4 times more likely to transmit HIV than individuals who are aware that they are HIV-positive. Calypte therefore believes that rapid oral fluid testing offers dramatic potential for improvement in HIV medicine. Field trials of Calypte's second generation oral fluid rapid test are underway, in preparation for a US FDA clinical trial in 2011. 

 "Calypte exemplifies the cutting-edge, efficient use of resources that is possible in Oregon," said Congressman David Wu, who represents the Portland area in the U.S. House of Representatives. "By funding research projects that can change the course of infectious diseases like HIV, the federal government is helping create jobs and drive economic growth through innovation."