For a country that makes up just 0.3% of the world’s population, Australia packs a heavyweight punch in science – generating 3.9% of the world’s research publications. However taking that research to market has proved a broader challenge.
Fostering the commercialisation of research success and encouraging collaboration between industry and researchers is at the forefront of the government’s renewed focus on scientific innovation, with over $1.1 billion earmarked to kickstart the “ideas boom” as part of the National Innovation and Science Agenda.
“Collaboration is key to turning Australian ideas into viable and lucrative commercial products and services,” says Christopher Pyne, Minister for Industry, Innovation and Science, adding that high-tech knowhow plus innovative R&D will drive jobs and wealth in the future.
“We must capitalise on the opportunities that are presenting themselves in the economic transition taking place in Australia by being agile, innovative and creative,” Pyne says.
He notes a range of measures, including the $155 million Industry Growth Fund and the R&D Tax Incentive program, are supporting firms to innovate and drive investment into new high-growth industry sectors.
From industry-funded ventures to university spin-offs and rising star start-ups, these are the Science Meets Business Top 25 Australian research and development spin-off companies.
Click here to see the full list, or continue reading. For further insights from the leaders of the Top 25 R&D spin-off companies, read their interviews on attracting venture capital, learning from overseas markets, getting past the valley of death, overcoming major start-up challenges and starting up.
1 FIBROTECH THERAPEUTICS PTY LTD
TYPE: NOT LISTED
CEO: Darren Kelly
SOLD FOR: US$557.5 million
INNOVATION RATIO*: 0.15
Fibrotech develops novel drug candidates to treat fibrosis (tissue scarring) associated with chronic conditions such as heart failure, kidney and pulmonary disease, and arthritis. The company spun out of research by Professor Darren Kelly at the University of Melbourne in 2006, and its principal asset is a molecule, FT011, which helps prevent kidney fibrosis associated with diabetes. In May 2014, in one of Australia’s biggest biotech deals at the time, Fibrotech was acquired by Shire, a Dublin-based pharmaceutical company, for an initial payment of US$75 million. Further payments, based on a series of milestones, will bring the total value of the sale to US$557.5 million, and the deal was awarded Australia’s best early stage venture capital deal in 2014. At the time of the sale, FT011 was in Phase 1b trials for the treatment of renal impairment in diabetics – a market worth US$4 billion annually.
*Innovation ratio = patents published/cited
2 SPINIFEX PHARMACEUTICALS PTY LTD
TYPE: LISTED
MARKET VALUE: $264 million
CEO/President: Dr Tom McCarthy
INNOVATION RATIO: 0.13
SOLD FOR: acquired by Novartis for US$200 million up-front payment plus milestone payments
Spinifex Pharmaceuticals was launched in 2005 to commercialise chronic pain treatments developed by Professor Maree Smith of The University of Queensland. Pharmaceuticals giant Novartis acquired the company in 2015 for a total of US$725 million, based on the promising results in Phase 1b and Phase 2 clinical trials. Spinifex’s treatment targets nerve receptors on peripheral nerves rather than pain receptors in the brain, making it possible to treat the pain from causes such as shingles, chemotherapy, diabetes and osteoarthritis without central nervous system side-effects such as tiredness and dizziness.
3 ADMEDUS LTD
TYPE: LISTED
MARKET VALUE: $61.88 million
COO: Julian Chick
INNOVATION RATIO: 0.02
REVENUE: $10.2 million
Admedus is a diversified healthcare company with interests in vaccines, regenerative medicine, and the sale and distribution of medical devices and consumables. Currently, the company is developing vaccines for herpes simplex virus and human papillomavirus based on Professor Ian Frazer’s groundbreaking vaccine technology. In the regenerative medicine field, Admedus is the vendor of CardioCel®, an innovative single-ply bio-scaffold that can be used in the treatment of congenital heart deformities and complex heart defects.
BIG 3 – RESMED LTD
TYPE: LISTED
MARKET VALUE: $7.85 billion
CEO: Michael J Farrell
INNOVATION RATIO: 0.02
REVENUE: $1.68 billion
For more than 25 years, ResMed has been a pioneer in the treatment of sleep-disordered breathing, obstructive pulmonary disease and other chronic diseases. The company was founded in 1989 after Professor Colin Sullivan and University of Sydney colleagues developed nasal continuous positive airway pressure – the first successful, non-invasive treatment for obstructive sleep apnoea. Today, the company employs more than 4000 people in over 100 countries, delivering treatment to millions of people worldwide.
4 BIODIEM LTD
TYPE: NOT LISTED
CEO/Executive Director: Julie Phillips
INNOVATION RATIO: 0.22
REVENUE: $203,809
BioDiem specialises in the development and commercialisation of vaccines and therapies to treat infectious diseases. The Live Attenuated Influenza Virus vaccine technology provides a platform for developing vaccines, including one for both seasonal and pandemic influenza. BioDiem’s subsidiary, Opal Biosciences, is developing BDM-I, a compound that offers a possible avenue for the treatment of infectious diseases that resist all known drugs.
5 VAXXAS PTY LTD
TYPE: NOT LISTED
CEO/Director: David Hoey
Vaxxas is pioneering a needle-free vaccine delivery system, the Nanopatch, which delivers vaccines to the abundant immunological cells just under the skin’s surface. Preclinical studies have shown that vaccines are effective with as little as one-hundredth of a conventional dose when delivered via a Nanopatch. In 2014, Vaxxas was selected by the World Economic Forum as a Technology Pioneer, based on the potential of Nanopatch to transform global health.
6 ACRUX DDS PTY LTD
TYPE: LISTED
MARKET VALUE: $122.39 million
CEO: Michael Kotsanis
INNOVATION RATIO: 0.01
REVENUE: $25.4 million
Biotech company Acrux was incorporated in 1998 after researchers at Monash University developed an effective new spray-on drug delivery technology that improved absorption through the skin and nails. In 2010, Acrux struck a US$335 million deal with global pharmaceutical company Eli Lilly for AxironTM, a treatment for testosterone deficiency in men. It was the largest single product licensing agreement in the history of Australian biotechnology.
7 PHARMAXIS LTD
MARKET VALUE: $72.9 million
CEO: Gary J Phillips
INNOVATION RATIO: 0.76
REVENUE: $59.25 million
Listed on the ASX in 2003, Pharmaxis has two products on the market: Bronchitol, a treatment for cystic fibrosis; and Aridol, a lung function test to diagnose and assess asthma. In 2015, Pharmaxis sold the rights to a treatment for the liver condition nonalcoholic steatohepatitis, to Boehringer Ingelheim in a deal that could be worth US$750 million.
8 OPTHEA PTY LTD
TYPE: LISTED
MARKET VALUE: $42.80 million
CEO/MD: Dr Megan Baldwin
INNOVATION RATIO: 0.01
REVENUE: $939,008
With a focus on ophthalmology, Opthea’s main product is OPT-302 – a treatment for wet age-related macular degeneration – which is currently in a Phase 1/2a clinical trial. Wet macular degeneration is the leading cause of blindness in the Western world. Opthea was formerly known as Circadian Technologies, acting as a biotechnology investment fund before transitioning to developing drugs in 2008.
9 BENITIC BIOPHARMA LTD
TYPE: LISTED
MARKET VALUE: $63.01 million
CEO: Greg West
INNOVATION RATIO: 0.14
REVENUE: $1.37 million
Benitec Biopharma’s leading product is DNA-directed RNA interference (ddRNAi) – a platform for silencing unwanted genes as a treatment for a wide range of genetic conditions. ddRNAi has broad applications, and can assist with conditions as diverse as neurological, infectious and autoimmune diseases, as well as cancers. The company’s current focus inludes hepatitis B and C, wet age-related macular degeneration and lung cancer.
10 CATAPULT GROUP INTERNATIONAL LTD
TYPE: LISTED
MARKET VALUE: ~$256 million
CEO: Shaun Holthouse
REVENUE: $11.8 million
Catapult makes athletic performance monitoring systems using global and local positioning technologies for more than 750 elite teams, universities and institutions worldwide. The technology was commercialised in 2006 and its IPO in December 2014 raised more than $12 million from investors – including from US billionaire Mark Cuban.
11 SMARTCAP TECHNOLOGIES PTY LTD
CEO: Dush Wimal
INNOVATION RATIO: 0.03
TYPE: NOT LISTED
Using a wearable electroencephalograph (EEG), SmartCap monitors driver fatigue by measuring changes in brain activity without significant discomfort or inconvenience. It notifies users when they are fatigued and what time of day they’re most at risk. SmartCap was formally EdanSafe, a CRCMining spin-off company.
BIG 3 – COCHLEAR LTD
TYPE: LISTED
MARKET VALUE: $4.8 billion
INNOVATION RATIO: 0.05
CEO/PRESIDENT: Chris Smith
REVENUE: $925.6 million
Cochlear delivers hearing to over 400,000 people worldwide through products like the cochlear implant. Pioneered by the University of Melbourne’s Professor Graeme Clark and developed with assistance from The HEARing CRC, the bionic devices were first successfully implanted by the Royal Victorian Eye and Ear Hospital for people with moderate to profound hearing loss. The global company now employs 2800 staff and assists people in 100 countries.
12 ECOULT PTY LTD
TYPE: NOT LISTED
CEO: John Wood
Founded by the CSIRO in 2007 to commercialise the UltraBattery, Ecoult was acquired by the East Penn Manufacturing Company in 2010. The UltraBattery makes it possible to smooth out the peaks and troughs in renewable power, functioning efficiently in a state of partial charge for extended periods.
13 QUICKSTEP HOLDINGS LTD
MARKET VALUE: $87.09 million
CEO/MD: David Marino
INNOVATION RATIO: 0.04
REVENUE: $39.51 million
Composite materials company Quickstep was founded in 2001 to commercialise their patented manufacturing process. Working with the aerospace, automotive and defence industries, Quickstep supplies advanced carbon fibre composite panels for high technology vehicles. In 2015, the company increased its manufacturing capacity, establishing an automotive production site in Victoria in addition to their aerospace production site in NSW.
14 ENGENEIC LTD
TYPE: NOT LISTED
JOINT CEOs/DIRECTORS: Dr Jennifer MacDiarmid and Dr Himanshu Brahmbhatt
MARKET VALUE: $178 million
INNOVATION RATIO: 0.03
EnGeneIC’s cancer treatment platform, the EnGeneIC Dream Vector (EDVTM), is a first-in-class cytoimmunotherapy.
The EDV is a nanocell mechanism for delivering drugs and functional nucleic acids and can target tumours without coming into contact with normal cells, greatly reducing toxicity. Above all, the EDV therapeutic stimulates the adaptive immune response, thereby enhancing anti-tumour efficacy. More than 260 patents support the technology, developed entirely by EnGeneIC, giving the company control over its application.
15 SNAP NETWORK SURVEILLANCE PTY LTD
TYPE: NOT LISTED
CEO: Simon Langsford
CTO/FOUNDER: Dr Henry Detmold
Snap’s FMx is a unique approach to video surveillance that forms cameras into a network based on artificial intelligence that learns relationships between what the cameras can see. It enables advanced real-time tracking and easier compilation of video evidence. Developed at the University of Adelaide’s Australian Centre for Visual Technologies, the system is operational at customer sites in Australia, Europe and North America.
16 ORTHOCELL LTD
TYPE: LISTED
MARKET VALUE: $32.89 million
MD: Paul Anderson
INNOVATION RATIO: 0.81
REVENUE: $1.69 million
Orthocell develops innovative technologies for treating tendon, cartilage and soft tissue injuries. Its Ortho-ATI™ and Ortho-ACI™ therapies, for damaged tendons and cartilage, use the patient’s cells to assist treatments. Its latest product, CelGro™, is a collagen scaffold for soft tissue and bone regeneration.
17 REDFLOW
TYPE: LISTED
MARKET VALUE: $111.3 million
CEO: Stuart Smith
INNOVATION RATIO: 0.16
REVENUE: $265,436
As the demand for effective energy storage grows, RedFlow’s zinc-bromide flow batteries are gaining attention. RedFlow has outsourced its manufacturing to North America to keep up with demand, while the company’s research and development continues in Brisbane.
18 MINIFAB PTY LTD
TYPE: NOT LISTED
CEO: Dr Erol Harvey
INNOVATION RATIO: 2
Since 2002, precision engineering company MiniFAB has completed more than 900 projects for customers across the globe. MiniFAB provides a complete design and manufacturing service, and has developed polymer microfluidic and microengineered devices for medical and diagnostic products, environmental monitoring, food packaging and aerospace.
19 RAYGEN RESOURCES PTY LTD
TYPE: NOT LISTED
CEO: Robert Cart
INNOVATION RATIO: 0.74
RayGen’s power generation method involves an ultra high efficiency array of photovoltaic cells, which receive focused solar energy from heliostats (mirrors) that track the sun, resulting in high performance at low cost. In December 2014, RayGen and the University of New South Wales (UNSW) collaborated to produce the highest ever efficiency for the conversion of sunlight into electricity. The independently verified result of 40.4% efficiency for the advanced system is a game changer, now rivalling the performance of conventional fossil power generation.
BIG 3 – CSL LTD
TYPE: LISTED
MARKET VALUE: $44.93 billion
CEO/MD: Paul Perreault
INNOVATION RATIO: 0.05
REVENUE: US$5.6 million
CSL is Australia’s largest biotechnology company, employing over 14,000 people across 30 countries. The company began in 1916, when the Commonwealth Serum Laboratories was founded in Melbourne. It was incorporated in 1991, and listed on the ASX in 1994. Since that time, CSL has acquired established plasma protein maker CSL Behring, and Novartis’ influenza vaccine business, and has become a global leader in the research, manufacture and marketing of biotherapies.
20 CARNEGIE WAVE ENERGY LTD
TYPE: LISTED
MARKET VALUE: $88.38 million
MD: Dr Michael Ottaviano
INNOVATION RATIO: 0.21
REVENUE: $1.72 million
Carnegie Wave Energy’s CETO technology converts ocean swell into zero-emission renewable power and desalinated freshwater. Ten years of research at test sites off the coast of Western Australia, along with over $100 million in local and foreign investment, has helped grow the company’s global profile.
A recent £2 million grant from the Scottish government boosted stock prices.
21 DYESOL LTD
TYPE: LISTED
MD: Richard Caldwell
MARKET VALUE: $110.13 million
INNOVATION RATIO: 0.12
REVENUE: $1.44 million
Dyesol Limited (ASX: DYE) is a renewable energy supplier and leader in Perovskite Solar Cell (PSC) technology – 3rd Generation photovoltaic technology. The company’s vision is to create a viable low-cost source of electricity with the potential to disrupt the global energy supply chain and energy balance.
22 EVOGENIX LTD
TYPE: NOT LISTED
SOLD FOR: $207 million
INNOVATION RATIO: 0.11
EvoGenix began as a startup in 2001 to commercialise EvoGene™, a powerful method of improving proteins, developed by the CSIRO and the CRC for Diagnostics. It acquired US company Absalus Inc in 2005, then merged with Australian biotechnology company Peptech in 2007, to form Arana Therapeutics. In 2009, Cephalon Inc bought the company for $207 million.
23 MURADEL PTY LTD
TYPE: NOT LISTED
CEO/MD: David Lewis
REVENUE: $4.18 million
With a vision to create sustainable energy through renewable biofuels, Muradel is a joint venture between the University of Adelaide, Murdoch University and SQC Pty Ltd. Their $10.7 million Demonstration Plant converts algae and biosolids into green crude oil. Muradel has plans for upgrades to enable the sustainable production of up to 125,000 L of crude oil, and to construct a commercial plant capable of supplying over 50 megalitres of biocrude from renewable feedstocks.
24 iCETANA
TYPE: NOT LISTED
CEO: Gary Pennefather
INNOVATION RATIO: 0.05
iCetana’s ‘iMotionFocus’ technology employs machine learning to determine what is the ‘normal’ activity viewed by each camera in a surveillance system and alerts operators when ‘abnormal’ events occur. This enables fewer operators to monitor more cameras with greater efficiency.
25 PHYLOGICA LTD
TYPE: LISTED
MARKET VALUE: $33.82 million
CEO: Dr Richard Hopkins
INNOVATION RATIO: 0.09
Phylogica is a drug discovery service, and the owner of Phylomer® Libraries, the largest and most structurally diverse suite of natural peptides. It has worked with some of the world’s largest drug companies, including Pfizer and Roche, to uncover drug candidates.
The Top 25 Science Meets Business R&D spin-off companies was written by Refraction Media in consultation with universities, industry and funding bodies, and supported by data from Thomson Reuters.
The research compiled by Refraction was judged by a panel comprising of: Dr Peter Riddles, biotechnology expert and director on many start-up enterprises; Dr Anna Lavelle, CEO and Executive Director of AusBiotech; and Tony Peacock, Chief Executive of the Cooperative Research Centres Association. The panel considered the following: total market value, annual turnover, patents awarded and cited, funding and investment, growth year-on-year, social value, overseas expansion and major partnerships.