Biotech on the brink

A quarter of Australia’s biotechnology companies are in danger of going bust by June this year unless they receive immediate government assistance, AusBiotech CEO Dr Anna Lavelle said.

Nearly half don’t have enough cash to operate beyond 12 months, she said in a statement.

She called on the federal government for assistance through refundable tax credits, competitive matched grants and help in increasing the pool of venture capital.

She listed examples of other countries that have moved to prop up their biotech industries to ride out the credit crisis, including Norway, the UK, Canada, Japan, Germany, China and Taiwan.

“The financial crisis has put at risk a generation of small biotech companies, which are in a precarious position,” she said.

“All of our global trading partners see the sense in supporting biotechnology and are doing this.”