EG Capital tips market upswing

In the wake of its annual Australian Biotechnology Expo, held earlier this week in Sydney, EG Capital executive director Alison Coutts is optimistic that the Australian biotech sector is on the way back up.

"The EG conference is a reflection of what the sector holds -- a showcase of what is on offer -- and a way to reach out to the investment community and other people to show the terrific work of the sector and worthiness of investment," Coutts said.

"[The biotech sector] is a bit more difficult than usual, but not as bad as it was four months ago. We are now on an early stage of an upswing turn around.

"It was in the real depths a few months ago, but the biotech sector is inherently volatile anyway. The market has its own cycles, and cycles within cycles, which can be severe -- up and down."

Coutts also feels that the biotechs are approaching the market in a different way. "In the companies, there is more development and closeness to going to market. There are real products being developed and potential sales, big pharma deals and major collaborations," she said.

Importantly, the funds managers are coming back to biotech, Coutts said. "The feedback has been good and a number of fund managers have come and gone -- a few years ago they weren't participating but now they are, to a limited extent."

Companies that presented at the EG Capital event included Cytopia, Neuren Pharmaceuticals, Optiscan, Heartware, Cygenics, Progen Industries, Pharmaxis, SomnoMed, Starpharma, Prima BioMed, Clinical Cell Cultures and Bio-Layer. Australian of the Year, Fiona Wood, gave the closing address.