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(Last updated: 5 Mar 2009)
Overview
Australia provides opportunities in biomedical, diagnostics, medical devices, and agri-biotech and has significant opportunities in cross-sectoral areas such as clinical trials, proteomics and bio-discovery.
Australia is a leading location for biotechnology companies in Asia Pacific with 470 core biotechnology companies, 49 per cent are in human therapeutics (Source: Ibid). Australia has a well-established medical device industry, a strong position in nano-biotechnology, and is internationally regarded for its expertise in stem cell research.
The expansion of Australia’s preclinical capabilities to regulatory standards of Good Laboratory Practice and current Good Manufacturing Practice offer significant opportunities for the country. Companies now offer contract scale-up and manufacturing services in Australia, mainly for developmental products required for clinical trials.
Australia is home to world renowned national research organisations such as the Commonwealth Scientific and Industrial Research Organisation and major national research facilities, including the world’s first dedicated proteome centre – the Australian Proteome Analysis Facility.
Strong pipeline of new drug development
Australia has a strong drug development pipeline with 154 compounds known to be in human clinical trials (Phase I to III), and a significant proportion (58 per cent) of these in Phases II and III (Source: Hopper and Thorburn, 2008 BioIndustry Review: Australia and New Zealand). Major pharmaceutical companies including AstraZeneca, GlaxoSmithKline, Merck & Co., Novartis and Pfizer are recognising the depth and maturity of the Australian industry, seeing it as an ideal melting pot of smart ideas with the potential for real commercial outcomes.
In 2007, the number of clinical trials increased by over 200 per cent (Source: Ibid) and Australian organisations partnering with internationals represented 68 per cent of the announcements, an increase of 12 per cent on 2006 (Source: Ibid). These figures demonstrate that Australia’s strong drug pipeline will attract increased international involvement as more drugs will be nearing Phase II and III clinical trials.
Australian biotechnology companies continue to develop and bring drugs to market, including (Source: Ibid):
- CSL – cervical cancer vaccine, Gardasil, marketed by Merck & Co.
- Biota – influenza drug, Relenza, marketed by GlaxoSmithKline
- Peptech (now Arana Therapeutics) – IP related to anti-TNF drugs, Remicade, marketed by Centocor, and Humira, marketed by Abbott Laboratories
- Sirtex Medical – liver cancer treatment, SIR-Spheres
- Acrux – spray on hormone replacement therapy for women, EvaMist, was launched in the USA in April 2008 through KV Pharmaceuticals
Key opportunities
Australia has a strong science base underpinned by a culture of collaboration, world-class infrastructure and a large pool of scientific and technical personnel.
Market capitalisation was A$22.4 billion for the top 10 biotech firms at the end of 2007 (Source: Ibid).
In 2007, 399 biotech alliances were announced. Over 70 per cent were with overseas entities – 101 with North American organisations, 100 with Europe and 57 with Asia.
Major partnerships announced between Australian and US organisations in 2007 included:
- Pfizer and pSivida signed an exclusive global deal valued at up to US$155 million.
- Genentech, Abbott and The Walter and Eliza Hall Institute of Medical Research collaborated to develop new anti-cancer drugs.
- Amylin and Xenome entered joint research collaboration to discover novel peptide therapeutics.
Austrade’s global offices and biotechnology Business Development Managers regularly identify and develop relationships with potential partners for Australian technology and services overseas.
In human therapeutics the US market is home to ‘big pharma and biotech’ including Pfizer, Merck & Co., AMGEN and Genetech. Europe is home to Hoffman la Roche, Sanofi Aventis, Glaxo Smith Kline, Astra Zeneca and Serono.
Additionally, Austrade assists Australian companies in doing business in the growing and dynamic Asia Pacific market with companies such as Takeda (Japan), Daiichi-Sankyo (Japan), Kobayashi (Japan), CK Life Sciences (China), the SinoChem Group (China), and LG Life Sciences (Korea).
China and India also represent unique opportunities for the Australian biotechnology industry for research collaborations, clinical trials, education services, manufacturing and distribution partnerships.
Programs and assistance
Existing government support for innovation, including the biotechnology sector, comprises a large number of programs that cater for different stages of development and also for some niche interest groups. There are also a number of state government initiatives which support research and development. Key Australian Government programs and assistance are listed below.
Funding programs for biotech companies
Innovation Investment Fund:
- Supports funds to commercialise R&D and develops new fund managers for early stage venture capital investing
- In IIF rounds 1 & 2, 4 of the 9 funds announced focused on biotechnology and bioscience
Early Stage Venture Capital Limited Partnerships:
- Exempts domestic and foreign investors in early stage venture capital limited partnerships from income and capital gains tax
- Supports Investment in Australia entities worth between $10 million and $100 million
- Australia is the top destination for venture funds invested in the Asia Pacific region
A premium 175 per cent R&D tax concession to encourage additional R&D in Australia by subsidiaries of multinational enterprises. The tax concession is worth 22.5 cents per dollar (after tax) for additional R&D conducted in Australia.
The Australian Government's Global Opportunities Program aims to facilitate groups of Australian biotech companies to form alliances and partnerships with global pharmaceutical and biotechnology companies.
Cooperative Research Centres
The Government’s Cooperative Research Centres (CRC) Program links public and private-sector investment and R&D expertise, establishing formal, strategic seven-year agreements between research providers and users in the public and private sectors. CRCs are major drivers of biotechnology and biomedical innovation in Australia. There are currently 49 CRCs operating across a wide range of industry and public benefit sectors, with over one-third completely or partially involved in biotechnology, biomedical or environmental bioscience research. Over the last few years, approximately 50 per cent of Australia’s biotechnology companies have been spun out of publicly funded research institutes.
For more information please visit www.crc.gov.au
How can we help you?
With a worldwide network of highly experienced and qualified staff, Austrade provides a number of dedicated and tailored services to Australian exporters.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au
Useful links and contacts
Austrade’s biotech team contact
Email: health@austrade.gov.au
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