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Biotech News AusBiotech National Conference 7-10 November 2004 – Brisbane In brief: Patent Attorney Kathryn Sunn and PTA Partner Dr Trevor Davies review Australia's premier biotechnology conference, AusBiotech 2004 - "Going Global", held in Brisbane earlier this month. |
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Introduction
The theme for AusBiotech 2004 was 'Going Global', which refers to the next stage in the evolution of Australia's biotechnology sector. It reflects the nature of Australia's maturing and entrepreneurial biotech industry - globally competitive with growing strengths in key fields.
Attendees
The conference had just over 1300 delegates registered, including about 200 delegates from 18 foreign countries. There were also 92 exhibitors ranging from ASX, a number of University representatives and technology suppliers, to small start-up companies. The conference also provided 32 biotech companies with the opportunity to showcase their company's profile and also the chance to attract potential business and/or investment partners.
Opening Remarks
To further build upon the theme of 'Going Global', the 2004 AusBiotech conference was officially opened by the Queensland Premier, the Hon Peter Beattie who commented that:
'biotechnology is diversifying our economy, generating exports, creating knowledge-based jobs, and improving our general way of life. The staging of AusBiotech 2004 is a great coup for the Smart State and it adds weight to our growing reputation as the biotech capital of Australia.'
It was clear from speeches and presentations by the Queensland Government representatives that Peter Beattie and his team have championed the Biotech industry in Queensland, generating noticeable outcomes. Similar commitment, enthusiasm and collaboration from Government counterparts in all other States would be welcomed by the Australian biotech industry.
Program
The first Plenary session of the conference was presented by Steve Burrill, CEO of US life sciences merchant bank Burrill & Co, who provided his perspective on the current and future outlook of the biotechnology industry. Steve Burrill commented that the biotech capital markets have been exceedingly choppy in recent times, despite the fact that the industry news in recent months has been predominantly positive. It was predicted that the drug-discovery industry - pharma and biotech alike - will undergo a sea-change as the age of personalised medicine begins. It was also stressed that one of the key factors of a successful biotech company is to keep feeding the drug pipeline with products. Biotech companies with only one product will seldom survive, and the key to feeding the pipeline is effective, aggressive partnering and not hiding within Australia's borders.
AusBiotech 2004 offered a good mix of speakers and sessions. Some speakers presented controversial points of view, others reinforced previously raised issues. Of note, the themes touched on in the plenary session by Steve Burrill cut across the majority of presentations:
- that the biotechnology industry is 'the next biggest thing' and it is predicted to overtake the information/communications sector by 2030;
- the age of personalised medicine has arrived and the future of the biotech industry looks promising;
- approximately one third of all new products are developed through collaborations;
- instead of trying to compete with Big Pharma, small biotech companies may be better off feeding the Big Pharma product pipeline through partnering, joint ventures or M & A;
- Australia has limited financial resources and probably too many biotech start-ups – hence the need for partnering/growth to ensure 'survival of the fittest';
- capital raising is critical and those companies with multiple products (clinical stage or later) are most likely to be funded; and
- a strong IP portfolio is crucial for a company, particularly when seeking partnership or capital raising.
A highlight of the conference was the 'Great Debate' on the topic that 'Development of competitive biotechnology companies is possible in the Australian business landscape', which evoked a thorough and objective consideration of the future of Australian biotechs from six well-respected CEOs and leaders in the field. Although the Biotech industry is 'the next best thing' and that the Australian biotech industry has the potential to be extremely profitable and one of the world leaders, it was concluded by the audience that, in the present Australian business landscape, the development of competitive biotechnology companies is not possible. It was considered that there are just too many small Australian biotech companies and not enough financial resources available in the present business landscape for each company to be sustainable, let alone be globally competitive.
Where to now?
The future looks bright – the Australian biotech capital market, reviewed in the recent Bio Report by Price Waterhouse Coopers, was found to have the top overall 10 year returns when compared to the US and European Biotech composite. Overall, global biotech capital market in 2004 significantly out performed similar markets in 2003. Investment in biotechs was also on the increase.
Closing Remarks
The general consensus from the conference was that the biotech industry in Australia has continued to grow and improve. Biotechnology has great potential, especially if comments by Steve Burrill on global returns to come from the this industry are any indication. It was estimated that 90 per cent of capital already invested in the sector has yielded 10 per cent of possible returns but that the next 10 per cent of capital invested in biotech in will reap 90 per cent of returns. The closing comments reinforced previous presentations in that Australian biotechs need to be more aggressive in partnering. Don't hide within Australia's borders – Go Global!
The National AusBiotech conference in 2005 will be held from 20-23 November 2005 at the Perth Convention Centre.
For further information please contact Dr Trevor Davies on +61 2 9230 4007.
