Fortune Forum Australian Summit 2015:The Australian Biotechnology Landscape25 November 2015

Dr Anna Lavelle, CEO, AusBiotech

AusBiotech• AusBiotech is Australia’s industry organisation, working on behalf of

members for nearly 30 years to provide representation and services to promote the global growth of Australian biotechnology.

• AusBiotech is a network of over 3,000 researchers, companies and investors in the life sciences sector, working in therapeutics, medical technology (devices and diagnostics), food technology and agriculture.

AusBiotech programs• National and stage government policy reform• Investment Series – Australia, New York, San Francisco, Hong Kong,

London• Over 70 events nationally / internationally per year• Support for companies seeking to export, e.g. trade missions, China

Guide for Medical Devices• Support for non-executive directors and CEOs of life science

companies, e.g. Life Sciences Reporting Guide and Guide for Directors of Life Science Companies

• Regular information to the sector via journal, e-newsletter and briefings.

AusBiotech programs• Partnering with others to deliver:

– Industry mentors for 2nd and 3rd year graduate students, taking top students from Australian universities

– International representation at conferences– Australia/China Health Summit– Influencing government policy, e.g. Medical Research Future

Fund, R&D tax incentive, Australian Innovation & Manufacturing incentive, clinical trial reform.

Australia Biotech Invest 2015• Held in Hong Kong, June 2015 (4th year running)• In 2015:

– 230 delegates, including 123 investors– 23 presenting companies from Australia, USA and

Singapore– 55 international delegates from China, India, The

Netherlands, New Zealand, Singapore, South Korea, the UK, and the United States

Australian biotechnology• Industry currently employs over 45,000 Australians in high-

value jobs, attracts >$1 billion a year in R&D investment and exports goods worth $3.5 billion a year.

• Australia is a leading location of biotechnology companies in the Asia-pacific, with ~300 biotechs (>100 ASX listed) and 400 medtech companies.

How does Australia rate?On an overall basis, the latest

Scientific American, Worldview Scorecard 2015 rated Australia # 4 globally in biotechnology for the second consecutive year.

Measured by Intellectual Property protection, intensity, enterprise support, workforce, policy & stability.

How does Australia rate?Scientific American, Worldview Scorecard 2015Adjusted for population

In global top three on six indicators:#2 Best growth in biotech public markets #2 Greatest public company revenues#2 Most public companies#2 Greatest public company market cap#2 Most public company employees#2 Best growth in biotech public markets

Capital raised by Australian companies

2007 - $ 943m2008 - $ 183m 2014 – $458 million2009 - $ 672m 2011 - $ 630m2012 - $ 257m2013 - $ 739m

Source: BioShares & Biotech Daily

R&D Tax IncentiveBiotech has been a big winner:• 45% cash refundable component for companies with TO of

less than $20m • 40% offset for companies with TO over $20m and under

$20b• Capped at $100m claims

Patent BoxAims to increase country competitiveness by spurring firms to invest more in innovation, producing more spill-over benefits, and also by providing a more competitive corporate tax climate for increasingly innovation-based firms.

Patent BoxNations adopt patent box for two key reasons:• Recognise that the process of innovation is subject to

multiple market failures, which limit spillover benefits.• Recognise process of innovation is much more global and

need tax code to be more competitive. • 10 countries have a version of patent box and the USA is

currently considering one.