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Excellent research facilities, world-class scientists and a strong but flexible regulatory regime have made Australia a powerhouse of biotechnology and pharmaceutical innovation.
An industry making its mark
In 2010-12, the industry generated A$7.48 billion in revenue selling products domestically and internationally (Source: IBIS World Industry Report, Biotechnology in Australia, page 5, March 2012). Companies specialise predominately in human therapeutics (49 per cent), agri-biotech (16 per cent), and diagnostics (13 per cent), with others operating in the fields of chemicals, the environment, food and beverages and bioinformatics (Source: Ibid page 16).
A robust and efficient regulatory regime
Australia is noted for a number of significant contributions in the biotechnology field, including the discovery of the curative effects of penicillin, the development of the cochlear implant, synthetic Omega 3 fatty acids, and the world’s first cervical cancer vaccine.
The industry also has a strong drug development pipeline, with around 6,100 clinical trials registered in Australia between July 2005 and January 2012 (Source: Australian New Zealand Clinical Trials Registry).
The clinical trials sector is worth around A$1 billion per annum to the Australian economy each year with direct foreign investment of over A$450 million per annum (Source: Australian Government Clinically Competitive: Clinical Trials Action Group Report, page 17, March 2011).
Supported by a robust and efficient regulatory framework, particularly in intellectual property protection, Australia is recognised by international biotech and pharmaceutical companies as a leading investment destination in the Asia-Pacific region.
A strong culture of R&D
Biotechnology companies with operations in Australia benefit from its sophisticated R&D infrastructure. Australia is home to world renowned research organisations such as the Commonwealth Scientific and Industrial Research Organisation (CSIRO); research facilities such as the Australian Proteome Analysis Facility (APAF) – the world’s first dedicated proteome centre; and world-class medical research institutes, including the Walter and Eliza Hall Institute, the Garvan Institute of Medical Research, and the Florey Neuroscience Institutes.
One of the world’s largest life sciences supercomputing facilities is also based in Australia, along with the Australian Synchrotron, which offers cutting edge infrastructure.
Government support for R&D
New tax offsets were available for eligible local and foreign investors in Australian R&D from July 2011. The Australian Government is encouraging investment in the R&D sector and offering a number of programs support including:
- Providing funding to the nation’s premier scientific research agency, CSIRO, and its work with industry, government and the Australian research community.
- The Cooperative Research Centres program which links public and private investment with R&D expertise.
- A National Enabling Technologies Strategy launched in 2010 provides a framework for the safe development of technologies such as nanotechnology and biotechnology.
- Commercialisation Australia, an initiative providing grants and other assistance to guide researchers, entrepreneurs and innovative companies through the commercialisation process. Commercialisation Australia has funding of A$278 million over five years to 2014, with a further A$82 million allocated for each year thereafter (Source: Commercialisation Australia).
- In the 2011/12 Federal Budget, the Government allocated an estimated A$9.4 billion (Source: Australian Government Media Release, 10 May 2011) in support of Australian science, research and innovation over the 2011/12 financial year. CSIRO was also allocated A$3 billion in funding to be paid in the four years from 2011 (Source: Australian Government Media Release, 10 May 2011).
Biotech investment opportunities
The biotechnology sector in Australia presents many opportunities for investment, from licensing agreements with Australian research entities to setting up Australian operations as a gateway to the quickly growing Asia-Pacific market and establishing R&D collaborations and R&D centres.
Leading Australian biotech companies
Leading Australian biotech companies have developed and brought many drugs to market – often in collaboration with international investors and multinationals. Among them:
- Starpharma Holdings – has a drug delivery collaboration agreement with Eli Lilly and Company for human pharmaceuticals
- Biota Holdings Limited – has partnered with Daiichi Sankyo to develop the influenza drug laninamivir
- Universal Biosensors – has partnered with Johnson & Johnson’s LifeScan on glucose meters and sensors
- Mesoblast – has entered into a strategic alliance with Cephalon Inc. (now TEVA) to commercialise its adult stem sell technologies
- Bionomics and Merck Serono – have a research collaboration to develop compounds for the treatment of Multiple Sclerosis
- Alchemia – has a collaborative partnership with Dr Reddy’s Laboratories Limited for marketing generic fondaparinux in America.
- Phylogica – has drug discovery collaboration agreements with Pfizer, MedImmune (the biologics unit of AstraZeneca) and Roche.
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