AUSTRALIA HAWKS BIOTECHNOLOGY WARES

In the wake of the recent Free Trade Agreement with the US, Australia's biotech sector continues to attract strong growth opportunities. A recent biotechnology convention, BIO 2005, saw record numbers of Australian academic sector and private biotech commercialisation teams seeking investment deals. Of the conference's 63 Australian exhibitors, some 20 were public or private R&D centres.

Hopes are high for the local biotech industry, especially in view of the legal status of many biotech research activities relative to the US. Human cloning is banned in Australia, but clear legislation permitting stem-cell research is expected to give the local sector an edge.

The Australian biotechnology sector is expected to grow in the longer term, with the Australian Pharmaceutical Partnership Programme (APPP) providing pharmaceutical manufacturers with AUD150mn (US$109.8mn) for research and development over the next five years. In 2004, the total market capitalisation of 15 of Australia's leading biotech companies increased by 26%.

However, there remain significant hurdles, especially as the majority of Australian biotech firms are single-product entities. The country also faces strong competition from would-be Asian biotech hubs including China, India, Taiwan and Singapore.