The Australian Government has identified six priority sectors under the Modern Manufacturing Initiative (MMI) to support companies locally and export globally. Medical products are a particular beneficiary of the policy along with industry collaboration and incentives to support scale-up and commercialisation. The 10 year roadmap provides milestones to achieve at two-, five- and ten-year intervals, which we anticipate to be supported by targeted measures to not only encourage growth, but to keep our IP and manufacturing here in Australia.
Listen as we explore the future for life sciences
Pre-COVID we were seeing a lot of life sciences companies getting ready to list. While you would think that the threat of a COVID-induced recession would dampen appetite, we very quickly saw a resurgence in life sciences companies wanting to IPO in the lead up to Christmas 2020. If anything, we’ve seen many companies accelerate their plans, and also look at options for listing both here and abroad.
We’ve supported a number of Australian life sciences companies to list or dual-list in other jurisdictions including the US, UK and India. We’ve also worked with a number of US life sciences companies that have listed here in Australia. The compliance involved with a dual or cross jurisdictional listing can be time consuming and the process can be costly, but it opens up new avenues for funding and market access.
Listen as we reflect on ASX trends in the lead up to Christmas 2020
Despite the very public race for a COVID vaccine, most medical products and pharmaceuticals are many years in development before hitting the market. While funding is available, it does remain competitive, as many investors are looking for a guaranteed return on a shorter-time frame. It’s one of the inhibitors of growth, but one that can be overcome through modelling and careful management.
Learn more about our approach to corporate finance and deals
Life science companies are no strangers to investment in R&D and innovation. The sector is about to have more incentive to innovate as the Government not only pours funds into medical products but also tests out Australia’s new Patent Box on the sector. The finer details have yet to be worked out, however, the Patent Box could be a tax effective tool to invest in additional R&D while also adding an extra layer of certainty to investors.
What does the R&D landscape in Australia look like?
The life sciences sector is increasingly embracing Employee Share Schemes as a way of attracting and retaining talent, but also to protect IP. However, not all employee share schemes are created equal and it’s important to match the kind of scheme you adopt with your business aspirations and the people outcomes you’re looking to achieve.
Listen as we talk about some of the different employee share scheme options available
The life sciences sector is highly specialised and skilled – and many of these skills are sourced from all over the world. With international borders closed for the better part of the year, we are at risk of other jurisdictions snapping up the skills that we can’t get into the country until 2022 at the earliest. So when an already competitive environment heats up, how can you innovate or change your approach to attract and retain the best global talent for your business?
Is it time to rip up your global mobility plan and make a global talent management one?
There are untapped markets for Australian life sciences companies – some on our doorstep like the populous ASEAN area and others like the US and Europe that have room to maneuver. It’s not quite as simple as shipping your product or devices to another location. It’s important to be across new and emerging trade deals, tariffs and customs protocols to streamline your logistics and help capture new markets. In addition to programs like the Australian Trusted Trader program, we strongly suggest having an international growth strategy that also focuses on international trade compliance.
What do you need to know about global trade and customs?
We have been partnering with AusBiotech for years on their Industry Position survey, an important piece of research exploring industry performance and trends for the future. While COVID disrupted plans for 2020 research, the 2019 Industry Position report highlights endemic issues that could challenge the sector as they scramble to harness current momentum and interest.
Read the 2019 Biotechnology Industry Position report
The life sciences sector is one of the most highly regulated in the world and also one of the most vulnerable to cyber crime, security issues and fraud. The systems and compliance in place can help to mitigate risk and identify vulnerabilities before they become problems. Whether it’s tax, audit or risk, we cut through the compliance and complexity.
Australia has a history of conducting the research here before the IP goes offshore to be manufactured elsewhere. The tide will slowly turn with Australian life sciences looking to bring manufacturing capabilities back to Australia – supported by the Translation, Integration and Collaboration steams of the MMI and various Federal and State grants to kick start the process. When it’s not feasible, companies are looking at new alternatives for production, including Singapore, India and Europe.
Read more about the MMI and grants available
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