Consultation opens for code of best practice

AusBiotech and the Australian Securities Exchange (ASX), with the support of the Victorian Government, have been working with a Reference Group of 11 industry experts to review the ‘Code of Best Practice for Reporting by Life Sciences Companies’ and the revised code is now open for comment.

The code encourages listed life science companies to adopt high, consistent standards of communication and market disclosure, to promote investor confidence. 

The code was first published in September 2005 as a joint initiative of AusBiotech and the ASX, originally developed by a large group of industry and investor experts, led by Dr Mike Hirshorn and Mr Eddie Grieve (ASX).

The finalised revised code (Edition 2) is to be launched in May 2013 and will be distributed to Victorian biotechnology companies and located on the Australian Securities Exchange (ASX) and AusBiotech websites.

The objectives of the code are:

• to provide a reference tool to guide public Australian life science companies in effective and informative communication to the market, according to a guidance framework;
• to incorporate international best practice in reporting, and thus enhance the reputation, integrity and credibility of the Australian life science sector;
• to provide information to investors about the disclosure framework that identifies the key drivers of value for life science companies, supporting more informed investment decisions.

The consultation on the revised document is currently being conducted during March 2013, involving more than 300 investors, over 50 biotechnology company CEOs and chairmen, investor relations specialists, more than 30 people who were involved in the development of Edition 1 and the Victorian Biotechnology Advisory Council.

The 2012-2013 revision has notably:

• reviewed of all aspects of the code to update information where practice has changed over the past 6-7 years;
• provided information on Guidance Note 8 to the Listing Rules, which has been added in line with the recent ASX consultation on the Listing Rules;
• reworked the IP section and it now includes a section on regulatory exclusivity;
• reordered some sections;
• added information on reimbursement to the regulatory section;
• tested all web links in the document and updated where applicable;
• added information about the people involved in the original development of the Code (Ed 1) and the Reference Group (Ed 2).

The Victorian Government’s support of this project is part of its Enabling Technology Skills Strategy - Biotechnology (2012-2015).

Comment on the code (Edition 2) is invited during the month of March, 2013, closing at Easter. Those interested in commenting on the code are asked to please contact the Project Manager, Lorraine Chiroiu, Communications Manager of AusBiotech (lchiroiu@ausbiotech.org).