AusBiotech reflects on a year of advocacy and achievement

For the biotechnology industry and for AusBiotech, the past year has been another action-packed period in policy terms, as well as the year the Australian biotech industry was ranked fourth in the world.

Advocacy on public policy has been at the forefront of AusBiotech’s work this year, as Australia’s largest life sciences industry body has helped its businesses to attract investment and grow.

The policy environment during the year evolved rapidly. The period saw unwelcome cuts to industry support in the new Coalition government’s first federal budget, along with positive developments - notably the Medical Research Future Fund and the October delivery of the Industry, Innovation and Competitiveness Agenda (II&CA).

The II&CA was welcomed as a win for common sense, with the announcement of the long-awaited restoration in the tax treatment of employee share schemes (ESSs) and Australian manufacturers of medical devices now able to register routine medical devices using certification from European bodies. The II&CA launched a plethora of consultations and submissions, commencing with the Review of Regulation of Medicines and Medical Devices, consultation on boosting commercial returns of research and Industry Growth Centres.

At every step, AusBiotech has been calling for (and often achieving) appropriate support to grow this industry of the future.

As Australia’s window of mining-driven prosperity begins to close, it is widely acknowledged that building Australia’s capacity as a technologically innovative country is vital for our economic future. High-tech innovative industries generate globally competitive economies and sustainable, high-skilled jobs, and Australian biotechnology is poised to make its contribution to Australia’s growth.

Australia has a strong comparative advantage in medical research and the calibre of its researchers, as well as its ability to specialise in niche manufacturing and a burgeoning biotechnology industry that is globally impressive by any comparative measure.

Following the success of AusBiotech’s campaign to introduce the R&D Tax Incentive and to defeat the Private Members’ Bill that sought to ban patents on all biological materials, work continues at a range of levels. AusBiotech’s role in public policy advocacy will focus on seeking greater government investment in innovation, advanced manufacturing and tax reform, on the basis that a growing biotechnology and life sciences industry will significantly boost Australia’s economic performance and build our nation.

Work will continue in the new year on tax reform with four pillars:

• Retain the R&D Tax Incentive intact.
• Introduce the Australia Innovation and Manufacturing (AIM) Incentive, a patent box-style incentive to enable Australian innovation to be internationally competitive and retain the associated benefits once research reaches commercialisation.
• Introduce fiscal incentives for investors in pre-revenue and start-up companies, to encourage ‘patient’ venture capital.
• Assisting in the consultation process to restore the employee share scheme to its pre-2009 form, especially for start-up companies, after its announcement in the II&CA.

AusBiotech again conducted the annual Biotechnology Industry Position Survey 2014, which was launched in June. While it showed a worrying trend of a sharp increase in the number of companies heading overseas to manufacture, AusBiotech is leveraging this information to support the case for further tax reform to enable Australia to be internationally competitive - and making ground.

The survey showed positive news that the industry’s outlook for the year ahead was bullish, with 81% of respondents expecting their business to grow and 70% of companies intending to hire more people. The number of companies identifying the Australian operating environment (economic conditions and public policy) as conducive to growing a biotechnology company improved significantly, up to 38% (from 16%: 2012 and 24%: 2013).

Positive shifts in investor sentiment both locally and internationally translated into an improved funding position for many respondents. The number of companies holding less than 12 months’ cash decreased to 22% this year (37%: 2013). Interestingly, only 33% of respondents were definitely planning on raising capital in the coming year. AusBiotech’s read on this is that the R&D Tax Incentive is providing very real and practical support to the industry, which is heartening.

As operations resume in January, the annual CEO survey for 2015 will commence, conducted to give a snapshot of industry sentiment, achievement and public policy issues. AusBiotech urges you to contribute to the body of information that will form the basis of its advocacy work for the year ahead.

AusBiotech has continued to deliver its calendar of high-quality industry events as well as adding new specialty events, creating important forums and networking opportunities for industry. Its investment event series continues to grow and provide a platform for partnering and capital attraction. AusBiotech’s two largest annual events - AusBiotech and AusMedtech - have continued their pivotal role in bringing the who’s who of biotech together. Earlier this year the organisation held the second Australia China Life Science Summit, and in November hosted the inaugural Advanced Manufacturing Summit, in acknowledgment of the leading roles China and advanced manufacturing will take in the future of life sciences.

AusBiotech has continued work on the ‘Australian Medical Devices & Diagnostics to China’ project, which aims to facilitate medical devices trade with China by breaking down the major barriers to entry. This activity received funding from the Australian Trade Commission as part of the Asian Business Engagement Plan.

It will result in much-needed information for Australian companies about intellectual property (IP) management in China and outline the types of business structures that are possible for Australian companies entering China for the first time. The project will produce:

• A guide to China for Australian medtech companies. The draft is in consultation and interested parties are invited to comment. See the draft here.
• Business planning workshops in Melbourne and Sydney in 2015 for Australian companies seeking to establish markets and/or businesses in China. The pilot was held in Brisbane in October.
• An AusBiotech-led business mission to China in 2016 of Australian companies.

Board

AusBiotech announced in October that a new chairman and three new directors were appointed to its board at the annual general meeting. The CEO of BioDiem and existing AusBiotech director, Julie Phillips, was appointed chairman, taking the mantle from long-serving chairman Dr Deborah Rathjen. Phillips has been a passionate and vocal advocate for the biotechnology sector and the opportunity it poses for Australia. She has been a director of AusBiotech since October 2013 and is currently an industry representative on the federal government’s Clinical Trials Advisory Committee.

AusBiotech also welcomes its new directors: Serina Cucuzza, Manager for Commercial Development and Industry Engagement at the Burnet Institute; Barry Thomas, Cook Medical Vice President, Director, Asia Pacific and Managing Director of Cook Australia; and Serg Duchini, Partner and Tax COO at Deloitte Tax Services and Deloitte Board Member. Both Thomas and Duchini have been working constructively with AusBiotech in engaging with the federal government in the design and development of the proposed Australian Innovation & Manufacturing (AIM) Incentive.

The AusBiotech AGM marked the departure from the board of its chairman of six years, Dr Deborah Rathjen, as well as directors Dr Greg Roger, who served the board for eight years, and Peter Turvey, who served for three years. The board extends its sincere thanks to the departing directors for their valuable contribution.

AusBiotech CEO Dr Anna Lavelle said: “Deborah Rathjen, as chairman since 2008, has steered AusBiotech through its most rapid change period. Her leadership has been essential to securing the changes which added strength to the organisation.

“Together with the board and staff there have been a number of notable achievements in recent years. The standout benefit for the industry was securing the R&D Tax Incentive and, associated with this goal of access to capital, the development of the very successful series of investment conferences, now held regularly in the US, Hong Kong and Australia. The interests of our members are paramount and are central to the decisions regarding new programs and advocacy positions.

“On behalf of the staff, I would like to thank Deborah for her efforts over a prolonged period and for her genuine interest in bettering the industry and maximising the impact of AusBiotech.”

The new board composition is:

• Julie Phillips
• Dr Anna Lavelle
• Michelle Burke
• Lawrence Gozlan
• Dr Andrea Douglas
• Serina Cucuzza
• Barry Thomas
• Serg Duchini

The board and team at AusBiotech wish you all a very happy and safe Christmas and look forward to working with you on your behalf to make 2015 the best year for biotechnology yet.

The AusBiotech office will close for the Christmas/New Year break from 5.00 pm Friday 19 December and re-open on 5 January 2015 at 9.00 am.

AusBiotech, supported by ABCA and CropLife Australia, put forward the successful bid to host the 15th Agricultural Biotechnology International Conference (ABIC) in Melbourne in 2015. AusBiotech will work to leverage this significant achievement and the many opportunities it presents for the advancement of agricultural biotechnology in Australia.

Save the dates for ABIC and other major events in 2015 from AusBiotech and its conference organising arm, AusEvents:

24-25 March	Science meets Parliament, Canberra, ACT (AusEvents)
29-30 April	AusMedtech 2014, Melbourne, Vic
19-21 May	Asia Biotech Invest, Hong Kong
15-18 June	BIO 2014, Philadelphia, USA
7-9 September	Agricultural Bioscience International Conference
24-25 September	Tech Transfer Summit Australia 2014, Location TBC
6-7 October	Australia Biotech Invest, Melbourne, Vic
7-9 October	AusBiotech 2015 National Conference, Melbourne, Vic

Please visit www.ausbiotech.org/events for more information.