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 Biotechnology is one of Australia’s fastest growing industries and the sector has established a world-class reputation for drug discovery, innovation, and research and development (R&D).
Australia is the fifth largest centre for biotechnology after the US, Canada, Germany and the UK (Source: World Report Australia 2007) and is ranked as the number one location to conduct clinical trials. (Source: Economist Intelligence Unit).
Our excellent global reputation is reflected in the biotechnology export figures, with around half our biotechnology and pharmaceutical companies currently exporting more than 50 per cent of total sales annually.
Australia has an international reputation for its capabilities in human therapeutics, agricultural biotechnology, diagnostics, medical devices and bio-discovery.
Other renowned Australian biotech capabilities include:
- Industrial biotech and biofuels
- Scientific instruments and laboratory equipment
- Engineering and design services for medical devices and drug delivery systems
- Nanotechnology
- Nutraceuticals
There are currently more than 420 biotechnology companies in Australia. Almost 100 of those firms are listed on the Australian Stock Exchange (ASX) and their revenue exceeds $3 billion annually.
Recent developments which are likely to raise the profile of Australia’s biotechnology industry include the Federal Government's decision to offer the cervical cancer vaccine Gardasil free to all young women in Australia and the Victorian State Government's decision to allow the planting of genetically modified crops, a move which other states are expected to follow.
International investments and exports
Significant investments into Australia from major global industry players are now commonplace and in 2006, Australian biotech companies announced 339 partnerships, 72 per cent of which were with overseas organisations.
In the first three months of 2007 alone, 19 alliances were announced by Australian biotech companies. These included 10 out-licences and nine overseas distribution agreements.
The majority of alliances (42 per cent) were signed with companies in North America, 37 per cent with European companies, 11 per cent with Asian companies and five per cent with firms in South America (another five per cent of alliances did not disclose this information).
Official data on specific international trade in this sector is unavailable. (IbisWorld Australia).
Australian biotechnology companies
The four core biotechnology sectors are biomedicine, agricultural, environmental and industrial.
In 2006, 47 per cent of biotech companies were dealing with human therapeutics, 16 per cent with agricultural biotechnology and 14 per cent with diagnostics companies. (Source: World Report Australia 2007).
There were more than 6000 people in full-time employment in biotechnology firms in Australia in 2006 (with almost one-third in R&D).
Most biotech companies are based in Victoria, New South Wales and Queensland, followed by Western Australia and South Australia.
Strong commitment to research
Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) is one of the largest and most diverse research organisations in the world. It boasts a critical mass of international biotechnology organisations that, according to Ernst & Young, generate 67 per cent of total public biotechnology revenues for the Asia Pacific region.
Other renowned Australian research institutions include malaria experts the Walter and Eliza Hall Institute, the Centre for Neuroscience and Mental Health Research, Macfarlane Burnet and Austin, which is the largest centre in Australia for vaccine development and infectious diseases and the Australian Stem Cell Centre (ASCC), located at Monash University.
New and emerging institutions include the $400 million Bio21 Institute in Melbourne (a research centre focusing on medical, agricultural and environmental biotechnology), Adelaide’s new multi-million dollar biotech incubator, and the unveiling of the synchrotron – Australia’s largest single R&D infrastructure project located at Victoria’s Monash University.
Australia has also recently announced an agreement to cooperate with Scotland on stem cell research. Other potential biotech research partners include the University of California and Singapore.
The commercialisation of research is going from strength to strength, with additional Co-operative Research Centres (CRCs) and a boost in funding via schemes such as COMET and Commercial Ready.
Forefront in biological and molecular sciences
Australian researchers have a proud record in biological and molecular sciences with Australians:
- Discovering that Helicobacter pylori caused gastric ulcers
- Garvan Institute's Diabetes & Obesity research team achieved a world first with a genetically engineered mouse that eats without gaining weight.
- Mapping the surface enzyme of the influenza virus
- The first to purify and clone three of the major regulators of blood cell formation
Some current successes include:
- Melbourne biotech firm CSL’s partnership with Merck to produce the new cervical cancer vaccine Gardasil
- Melbourne-based Biota’s development of global flu vaccine Zanamivir
- Australian firm Stapharma won a US$20 million grant to commercialise its HIV anti-infective programme
Biomedicine
The biomedical sector has been well-established in Australia for a number of years and Howard Florey was awarded the Nobel Prize in 1945 for his role in developing penicillin.
Other Australian breakthroughs include creating the bionic ear, purifying and cloning three of the major regulators of blood cell formation: GCSF, GMCSF and LIF.
Underpinning this sector are excellent healthcare system and records, government support and academic research at universities at universities, hospitals, medical research centres and CSIRO.
Australia is ranked second behind Canada as the most cost effective location for biomedical R&D, ahead of the US, UK and Germany, particularly with reference to labour, salaries, utilities and income tax (KPMG Competitive Alternatives).
Other successful areas in Australian biomedicine include:
- Therapeutics: stem cell and tissue engineering, gene therapy and microbial resistance
- Clinical and pre-clinical trials
- Medical devices and diagnostics, including drug delivery methods using nanotechnology and biomaterial in optical devices
- Biomarkers: diagnostic tools in pharmacogenomic and toxicogenomic profiles
- Vaccine development, including anti-biological warfare agents
- Agricultural biotechnology, including plant and animal genomics
Industrial biotechnology
Biotechnology has long been used in the production of beer, wine and cheese. New industrial biotechnology focuses on replacing traditional chemical processes with more sustainable and environmentally friendly biological processes and developing new processes, such as genetically modified yeasts to improve fermentation.
There are a number of drivers for industrial biotechnology in Australia, including:
- A strong resources-based economy and a need for sustainable resource use and development
- Pressure to reduce pollution
- The increasing cost of petroleum-based products for industrial processes
- The need to increase process efficiency to remain cost-competitive
(Sources: IbisWorld Australia 2006, World Report Australia (2007), Economist Intelligence Unit, Biotechnology Australia, KPMG Competitive Alternatives)
For more information please visit:
www.ausbiotech.org – AusBiotech
www.ausmanufacturers.com.au – Australian Manufacturers Guide
www.avcal.com.au – Australian Venture Capital Association Ltd (AVCAL)
www.biotechnology.gov.au – Biotechnology Australia
www.csiro.au – The Commonwealth Scientific and Industrial Research Organisation
www.industry.gov.au – Department of Industry, Science and Resources
www.investaustralia.gov.au – Invest Australia
www.tga.gov.au – The Therapeutic Goods Administration (TGA)
(Last updated: 18 Aug 2007)
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