Report shows growth in Australian biotech

A recently released report has identified signs of maturity in Australian biotechnology along with a continued need for early stage investment.

The ‘Beyond Discovery 2007’ report looks at the research origins and commercial experiences of 68 health biotech companies in Australia.

“While it is still early days for Australian biotechnology, there are promising signs of growth and maturity in the sector,” Research Australia CEO Rebecca James said.

According to the study, the majority of the businesses surveyed are in the start-up phase (32%) or their revenues are below $2 million (31%) — similar to 2004 figures.

25% of respondents reported revenues of between $2 and $10 million, while 10% had revenues in excess of $10 million per annum.

Almost half the companies surveyed (49%) derived incomes from selling products or services, while one third (34%) from licensing Intellectual property.

Only 13% of surveyed companies had sold intellectual property outright and only 10% reported they were profitable.

The report also found that companies are increasingly contributing to early research — up from 15% in 2004 to 24% in 2007 — now similar to that from universities (21%).

The need for funding remains the most significant hurdle (56%) for advancement, even though access to government funding is up from 17% in 2004 to 26% in 2007.