Biotechnology Australia

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Dec 1, 2012 (4 years and 6 months ago)

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8/27/2007
1
Based on information generously provided by:
Biotechnology Australia
and
Mr Craig Pennifold, Head, Innovation Division,
DITR
www.industry.gov.au
| 1 Aug 2007
Overview
• DITR has a number of activities targeted at boosting
Australia's biotechnology sector, including the 1 May
2007 Industry Statement
• Initiatives are centred around 4 key drivers of industry
growth:
 INNOVATION
 INTERNATIONAL COMPETITIVENESS
 INVESTMENT
 GLOBAL INTEGRATION
• The Department also hosts Biotechnology Australia
Industry Statement
• 10-year, $1.4bn Industry Statement released on 1 May 2007
• Industry Statement initiatives:
– $254.1m Global Opportunities program
– $351.8m Australian Industry Productivity Centres
– More than $500m to extend eligibility of the 175% Premium R&D Tax
Concession
– $90.3m Commercial Ready Plus program
– $20.1m over 5 yrs to encourage technology transfer through the new
Intermediary Access program
– $21.5m over 4 yrs for the National Nanotechnology Strategy
– $36.2m over 4 yrs to develop niche manufacturing industries based
on nanotechnology (CSIRO)
– $54.2m over 4 yrs to support R&D in the food processing industry
(DAFF)
INNOVATION
• Pharmaceuticals Partnership Program (P3)
• Innovation Investment Fund (IIF3)
• Commercial Ready and Commercial Ready Plus
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Pharmaceuticals Partnership Program (P3)
• P3 designed to achieve:
– Additional, high-quality pharmaceuticals R&D in Australia including
biotech, originator and generic medicine companies
– Development of medicines for global markets
– Partnerships and collaborations
• Over 3 rounds of funding:
– 12 biotech companies – offered $72.2m
– 5 pharmaceutical companies – offered $37.2m
– 1 generics company – offered $10m
• Pharmaceuticals is Australia's 2
nd
largest manufactured
export after cars and components
– $3.69bn in year ending May 2007, growing at 18% pa in 2005-06
– Top 5 exporters account for 85% of sales, and one drug for 26%
• P3 will cease in 2009 – program evaluation late 2007
Innovation Investment Fund Round 3 (IIF3)
• IIF3 - $200m, 10 funds over 10 years to commercialise R&D
and develop new fund managers
• $80m allocated to 4 new fund managers in 1
st
round of IIF3
(further information www.ausindustry.gov.au
):
– Cleantech Australia Fund
– Jagen's Prescient Ventures
– The Accede Capital OOF
– Brandon BioSciences Fund No 1
• 6 more fund managers will be licensed over the next 4 yrs –
each to receive $20m with at least matching private sector
investment
• In IIF rounds 1 & 2 – 4 of the 9 funds announced focussed on
biotechnology and bioscience
Commercial Ready and Commercial Ready Plus
The BIF is Back!
• Biotechnology R&D, proof-of-concept and early stage
commercialisation will continue to receive strong support under
Commercial Ready and the new Commercial Ready Plus
• Commercial Ready Plus offers:
– matching competitive grants of up to $250 000 to small businesses and
public research spin-offs
– modified grouping rules
– faster, more streamlined application process
– available from September 2007
• Between 2004 and 2007, Commercial Ready supported 93
biotech projects worth $143m
– 38% of total Commercial Ready grant payments
– average project size is >$1m
INVESTMENT
• Small Scale Mammalian Cell Production Facility
• Australian Stem Cell Centre
• Invest Australia
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Small Scale Mammalian Cell Production Facility
• One-off $10m establishment grant for a small scale
mammalian cell production facility
– An infrastructure gap identified by industry
• Facility will attract R&D to Australia and boost Australia's drug
development capability
• Strongly supported by industry and state governments
• Applications close 17 August 2007
• Successful applicant announced mid September 2007
• Further information at: www.industry.gov.au/mammalian
Australian Stem Cell Centre
• Commonwealth provided ASCC with $98.55m to 2011

Biotechnology Centre of Excellence funding administered jointly
by Australian Research Council and DITR
• First of three planned performance reviews of the ASCC
completed in April 2006 by an independent consultant, Growing
Your Knowledge (GYK)
• Review found that the ASCC has:
– built a strong foundation
– excellent management and research staff
– developed world-class research and IP management
Invest Australia
• Invest Australia is the Government's inward investment agency
• Act as a first point of contact for investors
• Offer free, comprehensive and confidential assistance
• Has investment advisory services in 16 locations around the
world
• Biotechnology and pharmaceuticals are national investment
priorities
• www.investaustralia.gov.au
INTERNATIONAL COMPETITIVENESS
• Early Stage Venture Capital Limited Partnerships
(ESVCLP)
• Australian Industry Productivity Centres
• Biotech Business Indicators
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Early Stage Venture Capital Limited Partnerships
(ESVCLP)
• ESVCLP legislation passed through parliament – June 2007
• Exempts domestic and foreign investors in early stage venture
capital limited partnerships from income and capital gains tax
– Supports Investment in Australian entities worth between $10m and
$100m
– Benefits SME's seeking capital injection to finance expansion and start
up companies
• The ESVCLP legislation will make Australia a more attractive
international investment location
• Australia is the top destination for venture funds invested in the
Asia Pacific region, accounting for 32% (US $763.3 million) of
funds invested in the region
Australian Industry Productivity Centres
• $351.8 m over 10 years from 2007-08
• Centres to help manufacturing and services SMEs enhance
international competitiveness and improve performance
• Centres will offer:
– free business diagnostic service, open to all sectors
– matching funding of >$20,000 for tailored advisory services
– matching funding of >$20,000 for technology and knowledge solutions
• First of five Centres to be launched September 2007
• Delivery through Industry Associations
• All centres expected to be operational by end 2007
• Further information: www.industry.gov.au
Biotech Business Indicators
•Monitoring Australia's biotechnology sector
•Trend analysis since 2004
• Q1 2007:
•Market cap up to $20.4bn
•No new listings
•11 notable clinical trial announcements
•19 International Alliances
•Between 2002-03 and 2005-06, over
A$1.74bn in new VC investment directed to
Australian companies engaged in the
biotech, pharmaceutical and health sectors
•Previous editions available at:
www.industry.gov.au/biotech_indicators
GLOBAL INTEGRATION
• Global Opportunities Program
• 175% International Premium R&D
Tax Concession
• Industrial Biotechnology Strategy
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Global Opportunities Program
• $254.1 m over 10 years from 2007-08
• Facilitate access to global supply chains and major
projects
• Multinational Enterprises (MNEs)
– Linking with Invest Australia and Austrade networks
• Strategic approach:
– Teams
– Trade missions
– Business matching services
– Experts in global procurement offices
– Market intelligence
– Capability and opportunity directories
175% International Premium R&D Tax Concession
• From 2006-07, eligibility for the 175% International Premium R&D Tax
Concession will extend to companies who hold their IP overseas
• Worth 22.5c per dollar (after tax) for additional R&D done in Australia
• Transitional arrangements for new investors and new & existing companies
who are currently eligible for the R&D tax concession
• International premium will provide:
– long term certainty
– lower cost
– greater accessibility through an entitlement scheme
– uncapped support
– more flexibility for companies with variable R&D expenditure
• Tax offset is a cash payment available to small companies undertaking up to
$1m R&D and $5m turnover, in a tax loss situation
Industrial Biotechnology
• Industrial Biotechnology has the potential to:
 Create new products
 Modify existing or develop new industrial processes
 Use bioscience approaches to reduce the environmental impact of
manufacturing
 Increase value of Australian biotechs
• DITR has produced three awareness-raising
brochures for Australian industry
Industrial Biotechnology Strategy
• DITR is developing an industrial biotechnology
strategy that aims to develop internationally
competitive businesses through adoption of
relevant biotechnologies broadly across industry
• By encouraging the broader application of
biotechnology across industry the strategy will have
the potential to
– Foster Innovation
– Increase investment
– Enhance international competitiveness
– Integrate Australian industry into global supply chains
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Biotechnology Australia
• Established in 1999, to coordinate the National
Biotechnology Strategy (NBS) including supporting:
– a framework to collect national biotechnology statistics
– a National Bioinformatics Strategy
– Public Awareness
– BioRegs Online
– the Asia Pacific Biotechnology Network
– a nationally consistent regulatory framework for Biodiscovery
– assessment of potential impacts of farming GM crops
– sponsoring the national AusBiotech annual Conference and
Australian participation at US Bio conferences
• The NBS is currently being evaluated, due for
completion in late 2007
BioRegs online –
www.bioregs.gov.au

Acceptability of biotechnology
applications, changes over time
40
50
60
70
80
90
100
1999 2001 2003 2005 2007
Use human genes in
medicines/vaccines
Using Stem Cells to
conduct medical
research
Using GM to produce
foods from crops
Monitoring Public Opinion – what does the
community really think?
• Major shifts in public attitudes - greater acceptance of
biotechnology and gene technology than in the past
• Acceptability of GM food plants increased from 48% in
2005 to 73% in 2007
• Acceptability of using gene technology to produce
medicines increased from 65% in 2005 to 89% in 2007
• Drivers of Acceptability
– Time has passed so GM no longer seen as futuristic and
unknown
– GM now seen as a potential solution to societal and
environmental problems, rather than a problem itself
– Assumed purpose more important than the science
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Pollution scares
Pandemics
Fuel shortages
Climate change
Water shortages
Lifestyle diseases
5
2
4
6
5
22
9
14
15
6
14
3
2
2
4
4
16
9
15
18
5
23
0
5
10
15
20
25
30
0 1 2 3 4 5 6 7 8 9 10
%
2005 (mean=6.1)
2007 (mean =6.9)
Base: All CATI, 2005 n=1,068, 2007 n=534
11
3
6
10
8
23
10
12
8
3
6
8
4 4
6
5
22
11
14
9
3
12
0
5
10
15
20
25
30
0 1 2 3 4 5 6 7 8 9 10
%
2005 (mean=4.9)
2007 (mean =5.5)
Base: All CATI, 2005 n=1,068, 2007 n=534
Health and medical applications GM food and crops
Monitoring Public Opinion
Expires 29 Feb 2008
Expires 3 March 2008
Expires 29 April 2008
Review after 24
December 2008
No moratorium
No moratorium
Expires 16 November 2009
No expiry date
State Legislation – GM Moratoria
BioFutures BioSolutions Forum

• Held in Canberra 14 June
2007
• 200 participants
• 3 Federal Ministers attended
• 20 high-profile speakers
• Addressed issues of:
 Competitive Industries
 Food Security & Crops of
the future
 Climate Change
 Protecting the Environment
 A Matter of Life and Death
 Biotechnology and Society
Redefined Biotechnology as a solution rather than a problem
and emphasised relevance to major high-profile issues.
Biotech Australia publications –
www.biotechnology.gov.au
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Summary
• DITR undertakes a number of activities targeted
at boosting Australia's biotechnology sector:
 Competitive grants
 Tax breaks
 Venture capital
 Business investment and facilitation
 Promoting networks and international linkages
• Department of Industry,
• Tourism and Resources
• Industry House
• 10 Binara Street
• Canberra City, ACT 2607, Australia
• Telephone +61 2 6213 6000