Australian Biotechnology Sector Fact Sheet 

KEY POINTS

• The sector comprises a range of companies, from start-ups to more developed companies selling products in Australia and overseas, and operating in applications of biotechnology including health, industrial processing, agriculture and the environment.
• The biotech sector has matured significantly in recent years. At the end of the 4th quarter (Q4) of 2008, the 75 ASX-listed biotech companies had a combined market capitalisation of A$22.4 billion (bn), compared to A$10bn at the end of Q4 2004 (see Table 1 for annual changes in market cap).
• CSL is Australia's largest biotechnology company, with a market cap of A$20.3bn at the end of Q4 2008.
• At the end of Q4 2008 the market cap of ASX-listed biotechnology companies excluding CSL was A$2.1bn, compared to A$4.1 bn at the end of Q4 2004. Most of this decrease has occurred since Q1 2008, which may reflect growing impact of the sub-prime and then global financial crises (see Table 1).
• At the end of Q4 2008, excluding CSL, there were five ASX-listed biotech companies with a market cap in excess of A$100 million (a list of these companies is attached) – they have a combined market cap of A$0.8bn, compared with 9 companies valued at over $100 million in Q1 2008 (combined market cap was A$1.8bn).
• There is a large number of research intensive SMEs, including many spin-outs from universities and other publicly funded research organisations.
• The maturation of the sector since 2004 illustrates the ongoing benefits of a strong research base, further underlined by the increasing number of companies with products in the later stages of clinical trials. Income generation from sales will allow these companies to mature their business structures and rely less on raising capital from external sources.
• The sector's major exports continue to be IP, through licensing deals with large, international pharmaceutical and biotechnology companies. 
• The global financial crisis appears to be impacting on the Australian biotechnology sector. Funds raised by the sector in Jan – Feb 2009 was $5.5m, significantly less than that raised in the same period in 2008 - $45.1m. The first two months of 2009 have seen an increase in merger and acquisition activity as well as implementation of cost cutting measures by a large number of firms in efforts to conserve cash flow.
• The most recent publication of Innovation Dynamics' BioIndustry Review Australia New Zealand states that as at December 2006, approximately 14,189 people were employed in 449 biotech companies; as at December 2007, there were 470 biotechnology companies.⁷

FACTS AND FIGURES

Available Key Indicators/Statistics 

Using data available from the ASX, the Department of Innovation, Industry, Science and Research (the Department) produces Biotech Business Indicators (BBI), a quarterly publication that summarises key statistics on the Australian biotech companies listed on the ASX.

Table 1: Biotechnology Sector – Key Market Statistics