How SR&ED Funding Fuels Advances in Dermal Therapy Creams and Lotion

In the rapidly advancing field of dermal therapy, research and development are essential to creating effective and innovative creams and lotions. As companies push the boundaries of skincare science, they often face technological uncertainties—challenges that can’t be solved through existing knowledge alone. The Scientific Research and Experimental Development (SR&ED) tax credit program in Canada provides skincare companies with the opportunity to offset costs associated with their R&D activities.

Key Technological Uncertainties in Developing Dermal Therapy Products

In the development and manufacturing of dermal therapy creams and lotions, companies encounter numerous challenges that require systematic investigation. Here’s how SR&ED tax credits can help fund dermal therapy companies as they strive to address these uncertainties:

1. Formulation Challenges

Creating a new skincare formula that meets stringent criteria for absorption, stability, and shelf life is often a complex process. The interactions between active ingredients can produce unpredictable results.  This often requires repeated trials to optimize the formulation. Companies experimenting with new ingredient combinations and delivery methods for improved absorption or stability may qualify for SR&ED funding.

2. Scale-Up Issues

While a new formulation may succeed in small batches, scaling up to large-scale production can reveal unexpected issues. Areas such as mixing, temperature control, and batch consistency require R&D efforts to refine these processes to maintain product quality at scale may be eligible for SR&ED tax credits.

3. Stability Concerns

Ensuring that a product remains stable and effective throughout its shelf life is particularly challenging. Especially when using novel ingredients or preservation methods. Research aimed at extending shelf life and maintaining efficacy under various conditions could qualify for SR&ED credits if significant experimentation is involved.

4. Advanced Delivery Systems

Innovative delivery systems, like liposomes or microspheres, are increasingly used to improve the targeted delivery of active ingredients in dermal therapy products. Developing these systems involves a high degree of uncertainty. In particular, regarding their stability and efficiency, making these projects eligible for SR&ED tax credits.

5. Safety & Efficacy Testing

For new formulations, specialized testing is often required to confirm both safety and efficacy. Designing and interpreting these tests can be complex. This is particularly evident when effects are challenging to quantify or mechanisms of action aren’t fully understood. Companies conducting rigorous testing and validation trials may be eligible for SR&ED funding.

6. Sustainable or Green Manufacturing

Switching to eco-friendly ingredients or sustainable production processes is increasingly important in skincare but presents its own set of challenges. Issues related to ingredient sourcing, energy consumption, and waste management often require experimentation to address. this makes these activities potential candidates for SR&ED credits.

7. Regulatory Challenges

Meeting regulatory standards, particularly when introducing new ingredients or processes, can require additional testing and validation. Navigating these regulatory requirements, especially when new testing methods are involved, can introduce technological uncertainty. This makes these types of projects eligible for SR&ED tax credits.

Maximizing SR&ED Tax Credits in Dermal Therapy

To qualify for SR&ED tax incentives, companies must demonstrate that they encountered technological uncertainties and undertook a systematic investigation to resolve them. By carefully documenting these R&D activities, companies in the dermal therapy sector can maximize their SR&ED claims, gaining substantial support for their innovative skincare solutions.

Contact Ayming Canada

Ready to elevate your dermal therapy R&D efforts with SR&ED tax credits? Contact Ayming Canada today. Our team of experts will help you navigate the complexities of SR&ED claims, ensuring you capture all eligible activities and maximize your funding opportunities. Reach out to us now to support your next breakthrough in dermal therapy innovation.