Investment - Fast Facts
Australia is a global hub for life sciences researchers, companies, investors and partners – thanks to innovation-focussed policies and a plan to draw the entire biotechnology ecosystem together.
We currently have around 100 ASX-listed life sciences companies, with a market capitalisation of more than $93.74 billion (Australasian Biotechnology, vol. 26 no. 2). In 2016, the Australian biotechnology industry attracted record deals flows of more than $2 billion and $1.1 billion of capital raising and boasts the largest listed biotechnology sector as a proportion of GDP in the world.
The trend of increased healthcare spending and technology advancements, and the unmet medical needs for cures and treatments will continue to provide the biotech sector with growth and advancements, as well as lucrative investment opportunities.
Over the last ten years, developments in biotechnology have been significant and the future holds the potential for many cures and advancements in the medical world.
Why now is the time to invest in Australian biotechnology
Investment leverage – exciting potential for significant above-average returns;
Attractive valuations – relative to the potential top-line and bottom-line growth;
Maturing sector profile – more Australian and Asian companies getting closer to commercialisation stage;
Sector rotation – risk capital seeking returns outside of resources;
M & A activity – large pharmaceutical companies are looking to add to their drying pipelines. The average acquisition premium was 66 per cent (with 47 per cent median) based on the last 82 transactions compiled by Citigroup;
Qualified talent is being drawn to the biotechnology industry;
Demographic drivers – ageing population in the Western world is providing increased momentum and investor flows; and
Regulatory pathway improving – the time required to get approval is reducing. A recent example is the ‘Breakthrough’ therapies pathway created by the FDA Safety and Innovation Act.
A world leader in biotech
Australia has been ranked fifth in the world for biotechnology, which is the third consecutive year the country has been ranked among the top five (Scientific American Worldview Scorecard 2016), and has the 12th highest output in the Nature Index 2015 Global.
AusBiotech’s investment events making an impact
Australia is now one of the great life science hubs in the world and the AusBiotech Investment Event Series is playing a part in the industry’s continuing development.
In October 2016, Australia will host Australia Biotech Invest, which will be part of the International BioFest 2016, the largest-ever gathering in Australian life sciences. With three major conferences coming together in one week in one place as one integrated network, these events demonstrate Australia’s potential to deliver rewarding partnerships with local and foreign investors.
Innovation-focussed policy strengthens the Australian biotechnology industry’s competitive advantage over its international counterparts. The new Biomedical Translation Fund (BTF), which will be at least $250 million in size, will stimulate private sector investment in biomedical commercialisation and create additional opportunities for foreign investors to access Australia’s expertise and discoveries. Fund managers will be selected through a competitive process, bringing at least matching funding from the private sector for investment, and will help investors access greater value for their investment by leveraging the public contribution.
As a global leader in medical technologies, Australia’s diverse suite of investment opportunities in biotechnology and pharmaceuticals ranges from discovery research to product development and manufacturing. Good IP protection, a transparent and effective regulatory system, and the Federal Government’s Research and Development (R&D) Tax Incentive all serve to attract and retain global investor attention.
New Code to increase investor confidence: promote it on your website
The Code of Best Practice for Reporting Life Sciences Companies (the Code) has recently been revised and updated. An online endorsement ‘button’ for use on your company website is available free-of-charge, to indicate to investors that your company’s practices are robust and meet disclosure requirements in accordance with the Code, thus giving investors assurance in your life science business.
The Code aims to support the directors and management of Australian ASX-listed life science companies to adopt international best practice in reporting events to investors. It also seeks to provide investors with a level of confidence through providing guidance on disclosure and appropriate reporting, as well as educational support regarding clinical trials and other matters.
Directory to connect Australian biotech companies
A new initiative from AusBiotech gathers searchable information on biotechnology and life science companies in one convenient digital location. Part of the larger Biotechgate global life science database, which includes more than 38,000 company profiles, the Australian Life Sciences Innovation Directory will help inform potential partnerships between the Australian and international industry.