Medical investment today like funding mining exploration and building no mines: investor

The system of funding medical innovation in Australia is broken, says Dr Jurgen Michaelis, Executive Director of newly launched Verde Capital.

“Currently the way funding is allocated to research rather than commercialisation would be akin to funding nothing other than exploration in the mining industry. A lot of drilling but no physical mine or export of goods,” he said, prior to the announcement of a new investment fund, Verde, launched at the AusBiotech 2012 conference in Melbourne this morning.

Less than 2% of the Government’s $9 billion funding to research is directed towards commercialisation, which means many discoveries struggle or fail to reach patients.

Verde is a joint venture between Terra Rossa Capital in Adelaide and Grey Innovation in Melbourne, and has been established to finance the commercialisation of Australia’s medical, defence and technology devices.

Technologies currently under evaluation for investment by Verde include: a device for non-invasive, real time monitoring to alert diabetics prior to reaching dangerously low blood sugar levels; batteries that can be recharged within one minute; a revolutionary new miniature nebuliser for the improved treatment of common respiratory illnesses such as asthma; internet enabled household devices that can provide warnings of approaching bush fires or storms and can sense highly localised air pollution in neighbourhoods.

“We are aiming to initially raise $50 million from private and institutional investors based both here and overseas”, said Dr Michaelis.