Tech CEOs tip biotech growth

CEOs of Australia's leading technology companies believe that the biotechnology and internet security sectors have the greatest potential for growth in the next 12 months, according to a Deloitte industry survey.

The survey, taken from interviews with CEOs of companies nominated for the Deloitte Fast 50 program, revealed that over 80 per cent of companies are confident about sustaining growth in the next 12 months.

Technico, a NSW agri-biotech company, was named as the fastest growing biotechnology company in the Fast 50 program, with a growth rate of 371 per cent over the last three years. It was ranked 17th, falling from its number three ranking last year.

John Elgin, Technico's general manager of business development, said the company had had a massive revenue growth but was now constrained by its operational systems that would require more finance and development.

"We have been a start-up for eight years," he said. "We are now more interested in changing our bottom-line profit so that we are sustainable and attractive for raising more capital.

"We are looking to raise more capital and an IPO may be an option in the medium term."

Technico has developed the award-winning Technituber seed technology, which has reduced the potato seed time-to-market by two to four years. It is also in the process of tackling the export market in South East Asia including India, China, Thailand, as well as North and South America.

Deloitte Life Sciences client director David Black said there was not a big contingent of biotechnology companies in the Fast 50.

"It's a reflection of the stage of maturity of the industry in Australia," he said. "They are in the product development stage rather than the sale and marketing," he said. Not many Australian biotechnology companies had products on the market yet, he added.

To be part of the Fast 50 program a company has to reach a threshold of $1 million in the last financial year, and most biotechs were below that mark.

"The top guys in the Fast 50 are generally younger companies coming off a low base, whilst the lower ranked companies have been around for a number of years," Black said. "We did a lot of publicity in biotechnology sector to raise awareness of the program but did not end up with many (biotechnology nominations)," he said.

"Less than 10 of the 150 nominations were from biotechnology companies, which is lower than last year's contingent. Private companies have to nominate themselves for the Fast 50 and some of them did not want to be involved."

Adelaide-based biotechnology companies GroPep and Advanced Rapid Robotic Manufacturing were also ranked in the Fast 50.

GroPep develops, manufactures and commercialises novel growth factors that increase cell growth, and has shown a growth rate of 123 per cent over three years and was ranked 44th overall.

Specialising in laboratory automation, Advanced Rapid Robotic Manufacturing has collaborated with leaders proteomics, microbiology, viticulture and life sciences to develop robotics for sample processing and research. Ranked number 47 overall, the company has had a three-year growth rate of 113 per cent.

The Fast 50 program was established in Australia two years ago.