Tag Archives: start-up

Australian life science

Innovation in life sciences

The community of Australian life science innovators are clever, focused and driven. Yet many fail to achieve their commercial goals. Sometimes this because of the science – which is not yet sufficiently developed for the commercial path.

Sometimes it is inexperienced management or governance. But usually, the key barrier is access to capital. Australia has talent and good ideas aplenty, but our small economy and lack of risk capital produces challenges not seen in bigger economies, like the USA. “Yes,” I hear you saying.

What about other smaller nations? It is true that some Scandinavian countries and Israel perform very well. But when the culture, government structures, location and many other factors are taken into account, the comparisons with Australia – although very useful– are not equivalent.

In order to optimise our performance and deliver both social and economic benefits, the current conversation at the Federal level is well directed. We need an approach that is system-oriented; that considers the international exemplars and how they can be applied in the Australian context, and pays attention to capital access.


“The strength of biotechnology for our economic future is clear, but to realise its vast potential will take radically new thinking and an entrepreneurial attitude.”


When the Biomedical Translation Fund (BTF) was announced as part of the Turnbull Government’s National Innovation and Sciences Agenda (NISA) in December 2015, it was welcomed by AusBiotech as a game-changing package that will transform Australia’s ability to commercialise.

The biotechnology and medical technology sectors are particularly excited by the ability of the program’s investment to be a multiplier and make available much-needed capital to translate our research from universities and medical research institutes into products and services – including medical therapies and cures, medical devices, digital heath solutions, diagnostics and vaccines.

Fund manager, GBS Ventures, which specialises in the life sciences has invested $400 million in 30 companies in recent years and reports it has attracted $5 in private money for every $1 of public money invested.

So far as this can be extrapolated to the new fund, the BTF could be the catalyst for over $2.5 billion to flow into the sector.

The BTF is envisaged as a for-profit investment program of $250 million that is to be matched by an additional $250 million from private investors, so creating a $500 million capital pool available for commercialisation of biotech and medtech projects.

Funding would be engaged, inter alia, before and during clinical trials and product registration stages. The investments by the BTF and its private co-investors are likely to fall in the range of $5 million to $20 million per project.

This is great news for a cash-starved sector.

The strength of biotechnology for our economic future is clear, but to realise its vast potential will take radically new thinking and an entrepreneurial attitude. How we make and fund these new technologies by attracting capital is key.

AusBiotech is pleased to see the Government has been listening to calls for a focus on translation.

Australian life science companies attracted almost $2 billion in deals over the last 18 months, which illustrates that the sector is attractive to investors and demonstrates a good pool of quality technology, talent and opportunity that the BTF will now exploit. Finance from the BTF, along with the R&D Tax Incentive scheme is a powerful, one-two punch that will make a material difference to success in life sciences.

Dr Anna Lavelle

Chief Executive Officer, AusBiotech

Read next: Professor Peter Coaldrake AO, Vice-Chancellor of QUT on Overcoming academic barriers to innovation.

Spread the word: Help to grow Australia’s innovation knowhow! Share this piece using the social media buttons below.

Be part of the conversation: Share your ideas on innovating Australia in the comments section below. We’d love to hear from you!

innovation in western australia

Innovation in Western Australia

Science is fundamental for our future social and economic wellbeing.

In Western Australia we’re focusing on areas where we have natural advantages, and an appropriate base of research and industrial capacity. Western Australia’s Science Statement, released by Premier Barnett in April 2015, represents a capability audit of relevant research and engagement expertise in our universities, research institutes, State Government agencies and other organisations. Mining and energy, together with agriculture, are traditional powerhouses, but the science priorities also reflect the globally significant and growing capabilities in medicine and health, biodiversity and marine science, and radio astronomy. It’s a great place to begin exciting new collaborations.

The Science Statement has also helped to align efforts across research organisations and industry. For instance, in 2015 an industry-led “Marine Science Blueprint 2050” was released, followed by the Premier commissioning a roundtable of key leaders from industry, Government, academia and community to develop a long-term collaborative research strategy. These meetings highlighted critical areas of common interest such as decommissioning, marine noise, community engagement and sharing databases.


“Opportunities abound for science and industry to work together to translate research into practical, or commercial, outcomes.”


Science, innovation and collaboration are integral to many successful businesses in Western Australia. In the medical field, a range of technological innovations have broadened the economy and created new jobs. Some of these success stories include Phylogica, Admedus, Orthocell, iCeutica, Dimerix, Epichem and Proteomics International. Another example in this space is the Phase I clinical trial facility, Linear Clinical Research, which was established with support from the State Government – 75% of the trials conducted to date come from big pharmaceutical and biotechnology companies in the USA.

Opportunities abound for science and industry to work together to translate research into practical, or commercial, outcomes. For example, the field of big data analytics is rapidly permeating many sectors. Perth’s Pawsey Centre, the largest public research supercomputer in the southern hemisphere, processes torrents of data delivered by many sources, including radioastronomy as the world’s largest radio telescope, the Square Kilometre Array, is being developed in outback WA. In addition, local company DownUnder GeoSolutions has a supercomputer five times the size of Pawsey for massive geophysical analyses. In such a rich data environment, exciting new initiatives like the CISCO’s Internet of Everything Innovation Centre, in partnership with Woodside, is helping to drive innovation and growth.

Leading players in the resources and energy sector are also taking innovative approaches to enhance efficiency and productivity. Rio Tinto and BHP Billiton use remote-controlled driverless trucks, and autonomous trains, to move iron ore in the Pilbara. Woodside has an automated offshore facility, while Shell is developing its Prelude Floating Liquefied Natural Gas facility soon to be deployed off the northwest coast. Excitingly, 3 emerging companies (Carnegie, Bombora and Protean) are making waves by harnessing the power of the ocean to generate energy.

This high-tech, innovative environment is complemented by a rapidly burgeoning start-up ecosystem. In this vibrant sector, Unearthed runs events, competitions and accelerators to create opportunities for entrepreneurs in the resources space. Spacecubed provides fabulous co-working space for young entrepreneurs, including the recently launched FLUX for innovators in the resource sector. The online graphic design business Canva, established by two youthful Western Australians epitomises what entrepreneurial spirit and can-do attitude can achieve. In this amazingly interconnected world, the sky’s the limit.

Professor Peter Klinken

Chief Scientist of Western Australia

Read next: Professor Barney Glover, Vice-Chancellor and President of Western Sydney University and Dr Andy Marks, Assistant Vice-Chancellor (Strategy and Policy) of Western Sydney University on Making innovation work.

Spread the word: Help to grow Australia’s innovation knowhow! Share this piece using the social media buttons below.

Be part of the conversation: Share your ideas on innovating Australia in the comments section below. We’d love to hear from you!

spin-off start-ups

Top 25 insights: spin-off start-ups

Seven leaders of the Top 25 Science Meets Business R&D spin-off companies answer the question: What insights can you share with other R&D spin-off start-ups in Australia?


CATAPULT GROUP INTERNATIONAL LTD

Fill a market need and lead that market; don’t fill a product gap and complicate your market with a technology push.

It doesn’t matter how technical your product or service is, it needs to be easily explained and have a story that resonates for it to be successful in any market, let alone overseas markets.

Shaun_intext

– Shaun Holthouse, Chief Executive Officer


SMARTCAP TECHNOLOGIES PTY LTD

A few words of wisdom.

1. Make sure there is a viable, readily accessible market that is sufficiently large to support a spin-off company.

2. The actual invention is only the trigger to start a company – you are establishing a company that will need to innovate on an ongoing basis if it wants to be successful. Make sure that innovation capability and desire exists and thrives in the spin-off.

3. Identify competent board and management capability to direct the business and generate revenue for the company. Most often the management capability is not the same people who carried out the research, but sometimes it can be. Without the right people running the show, the spin-off will not be successful. 

4. Make sure you have sufficient funding available to get the company through to a viable revenue stream, and ideally flexible funding arrangements. Unexpected things will happen and you need capability to accommodate those changes.

– Kevin Greenwood, Chief Operating Officer


PHARMAXIS LTD

“Most start-ups are focused on development plans that contain binary events and marginal financing. This makes them vulnerable to unforeseen delays and additional development steps that require additional funding.

I believe that we should be looking to generate portfolios of innovation under experienced management teams that give our projects the best chance of success – and adequate funding to reach proof of concept in whatever market we are targeting – but at the same time help to spread risk.

venture capital

– Gary J Phillips, Chief Executive Officer


ACRUX DDS PTY LTD

“Ensuring a strong board, CEO, and a quality management team will be critical to success. The availability of funds for programs is an often-discussed barrier to rapid progress. Underfunded companies and poorly thought-out product concepts or technologies are more likely to fail early.

Michael Kotsanis_intext

– Michael Kotsanis, Chief Executive Officer


SPINIFEX PHARAMCEUTICALS PTY LTD

“1. For biotechnology R&D spin-off start-ups in Australia, major hurdles are the dearth of seed capital as well as access to large follow-on venture funds that are needed to build successful biotechnology companies.

2. There is a mismatch between the 10-year life span of a venture capital fund in Australia and the 15+ years needed to translate research findings into a novel drug or biologic product for improving human health. 

3. Hence, these systemic issues are major impediments to building successful biotechnology companies in Australia and these issues need to be addressed.”

– Professor Maree Smith, Executive Director of the Centre for Integrated Preclinical Drug Development and Head of the Pain Research Group at The University of Queensland


ADMEDUS

Start-up companies may consider moving overseas, especially if the Government stops or reduces the R&D tax rebates and doesn’t establish some innovation stimulus packages.

venture capital

– Dr Julian Chick, Chief Operating Officer


REDFLOW

Nothing ever goes 100% smoothly – perseverance is a prerequisite.

Stuart Smith_intext

– Stuart Smith, Chief Executive Officer

Click here to see the full list of Top 25 Science Meets Business R&D spin-off companies, or for further insights from the Top 25 leaders, read their interviews on attracting venture capital, learning from overseas marketsgetting past the valley of death and overcoming major start-up challenges.

Top 25 leaders: Darren Kelly

Top 25 leaders: Darren Kelly

R&D company Fibrotech Therapeutics has the goal of treating fibrosis, which results from persistent tissue damage and leads to organ failure in more than 45% of diseases. Fibrotech develops orally active anti-fibrotic inhibitors designed to treat underlying pathological fibrosis in kidney and heart failure.

Kelly co-founded Fibrotech with Associate Professor Spencer Williams from the Bio21 Institute, and Dr Henry Krum and Professor Richard Gilbert from the University of Melbourne.

Their goal was to take compounds through early safety studies in animals and humans, before selling on to a pharmaceutical company. They designed compounds off the structure of tranilast, an anti-fibrotic compound, reducing its toxicity and increasing its potential.

Fibrotech was sold to global specialty biopharmaceutical company Shire in 2014 for an upfront US$75 million and further milestone payments of US$482.5 million.

In May 2015, Kelly launched OccuRx to develop drugs to treat ophthalmic disorders associated with retinal fibrosis and inflammation, and aims to take them to Phase 2 clinical trials. “We licensed the technology to administer anti-fibrotics to people with eye disease and fibrosis.”

Fibrotech Therapeutics tops the Top 25 Science Meets Business list of Australia’s most successful R&D companies.

“Key drivers to any biotechnology startup are passion and tenacity, and the desire to make a difference,” says Kelly.

Click here to read the full list of Top 25 Science meets Business R&D spin-off companies, or click here for Top 25 insights into attracting venture capital.

Firing up our start-ups

Firing up our start-ups

Stories of ‘unicorn’ Initial Public Offerings and billionaires in their 30s are great. But it’s the creation of quality jobs that truly makes innovation a national priority.

A recent report from the Office of the Chief Economist showed Australia added about one million jobs from 2006–11. Start-up companies added 1.4 million jobs, whereas older companies shed 400,000 jobs over the same period. But it’s not any start-up that matters; only 3.2% of start-ups take off in a dramatic fashion, providing nearly 80% of those new jobs. While Australia has a relatively high rate of companies starting up, the key seems to be getting more of them into high-growth mode.

When Israel faced a massive influx of immigrants after the collapse of the Soviet Union in 1990, it turned to innovation as a means of providing jobs. Given the country’s lack of natural resources, they didn’t have a choice. A population of four million people taking in one million more meant Israel had to become an innovative economy.

They grew their investment in research and development dramatically – to the point where Israel is now one of only two countries consistently spending more than 4% of GDP on R&D.

Israel has translated that spending into high-tech export success. Now, multinational technology company Intel employs over 10,000 Israelis. The Israeli Government is hands-on in its approach to de-risking early stage companies. But this is not achieved through government spending alone. In fact, the Israeli Government’s share of total R&D spending is just one-third of that of Australia, and its higher education sector is just one half. Business carries the lion’s share of R&D spending in Israel, making up 80% of the total, compared with 60% in Australia.

in text graph2

If we want jobs, we need innovation. We are in a unique period when there seems to be complete political agreement on this point. If we want innovation, we should take lessons from wherever we can learn them to develop the Australian system. A lesson from Israel is to use government spending more effectively at the early stages of company development to shift more start-ups into high-growth mode. If we could double the current 3.2% of today’s start-ups that become high-growth companies, we could provide more rewarding jobs for Australia’s future.

Israel concentrates almost 100% of its government innovation support for business on small and medium-sized enterprises. The comparable figure for Australia is 50% – a big hint for what we could do differently to fire up our start-up sector.

–Tony Peacock

Tony Peacock is CEO of the Cooperative Research Centres Association and founder of KnowHow.