Focus on global commercial partnerships

Australia has a strong science base underpinned by a culture of collaboration, world class infrastructure and a large pool of scientific and technical personnel.

Opportunities for investment

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.

Significant capital raisings in 2007

There was a significant increase in capital inflow into the Australian biotech sector in 2007. Bioshares, an Australian investment resource, reported that the increase was driven by the funding needs of a number of local companies conducting pre-market phase clinical testing of their drug candidates. The combined value of IPOs and flow on raisings totalled A$943 million last year, which represents a jump from A$627 million in 2006. Of this total, 50 per cent was raised by 12 companies (Source: Bioshares, Number 247, 18 January 2008). Significant capital raisings completed by Australian-listed biotech and medical devices companies during 2007 are as follows (Source: Bioshares, Number 247, 18 January 2008): 

• Avexa also raised A$79 million to fund Phase III clinical trials for its HIV drug candidates.
• Pharmaxis raised A$61 million to complete its cystic fibrosis and bronchiectasis clinical trials and expand its manufacturing capacity.
• pSivida raised A$43.5 million to fund Phase III clinical trials for its Medidur program for the treatment of diabetic macular oedema.