Has there been a better time to invest in biotech?

AusBiotech described 2017 as the best year yet for the biotech industry in Australia.  The $500 million Biomedical Translation Fund (‘BTF’) has been a key driver of investment into the sector, announcing its first investment in May 2017 and four more in the backend of last year, with a total value of around $40 million.

The BTF, established with equal backing from the Federal Government and the private sector, is an equity co-investment venture capital program that supports the commercialisation of biomedical discoveries and helps to develop them to generate long term health benefits and national economic outcomes.

The Australian Private Equity and Venture Capital Association (‘AVCAL’) has lauded the BTF (which is focused on investment into private companies) as a prime example of a government initiative which is ‘operating to attract private capital into a sector of the economy, which otherwise, would not attract adequate investment.’

For instance, Melbourne-based Rex Bionics secured a $5 million investment through BioScience Managers and the BTF to support the development and commercialisation of its hands-free robotic device designed to assist those with severe disability.

If you’d like to know what is involved in attracting and securing private investment into your biotech company, please contact one of our experienced team who’ll be delighted to guide you through the process.

In its 2018-19 Pre-Budget Submission, AVCAL called on the Federal Government to implement several policy recommendations to allow innovation to become a key national growth driver.

With the BTF helping to drive investment into biotech start-ups and scale-ups, and steps being taken to move towards a more favourable policy environment, we expect to see greater and much-needed investment into the sector in the coming years.

Of course, from an investor’s perspective, biotech is only one sector of the health and medical industry that provides opportunities for investment.  There are many listed companies operating in the health and medical sectors.  At our forthcoming ASX Breakfast on 7 March at the Adelaide Convention Centre you will get the chance to hear from four South Australian headquartered ASX listed companies operating in this sector:

  • Alcidion provides intelligent informatics technology that provides decision support tools to clinicians to ensure the highest quality of care for their patients.
  • Bionomics is a biopharmaceutical company dedicated to making better treatments for cancer and central nervous system disorders such as anxiety, depression and Alzheimer’s disease.
  • Ellex has pioneered minimally invasive ophthalmic devices and technologies that provide reduced costs to the patient and the wider healthcare system and improved patient care.
  • RHS has developed and commercialised its EmbryoCellect™ kit, based on advanced patented single cell genomic technologies that originated from the Department of Obstetrics and Gynaecology at The University of Adelaide.

Kain Lawyers is delighted to support fast growing health and medical businesses.  If you’d like to be one of more than 700 people expected to attend this free event and hear more about the opportunities for investment in this exciting sector, please contact Dayna Roberts ([email protected]).