(Last Reviewed :  18/08/2008 )

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.
  • As at December 2006, 449 biotech companies employed approximately 14,189 people; as at December 2007, there were 470 biotechnology companies.
  • The biotech sector has matured significantly in recent years. At the end of the 1st quarter of 2008, the 73 ASX-listed biotech companies had a combined market capitalisation of A$22.7 billion (bn), compared to A$10bn at the end of Q4 2004.
  • Five of the ASX-listed biotech companies increased their market cap during quarter 1 of 2008.
  • CSL is Australia's largest biotechnology company, with a market cap of A$19.3bn at the end of Q1 2008.
  • At the end of Q1 2008 the market cap of ASX-listed biotechnology companies excluding CSL was A$3.4bn, compared to A$4.2bn at the end of Q4 2004. Most of this decrease occurred during the recent stockmarket volatility in Q1 2008.
  • At the end of Q1 2008, excluding CSL there were nine ASX-listed biotech companies each 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$1.8bn, compared to 10 companies in Q1 2004, with a combined market cap A$1.9bn. 
  • There are also a large number of research intensive SMEs, including many spin-outs from universities and other publicly funded research organisations.
  • The maturation of the sector illustrates the ongoing benefits of a strong research base.
  • The review of the National Innovation System will provide the opportunity put in place the right policies and programs so Australia can continue to capture the benefits from biotech innovations.
  • The sector's major exports continue to be IP, through licensing deals with large, international pharmaceutical and biotechnology companies.

FACTS AND FIGURES

Available Key Indicators/Statistics 

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

As at end of:

Q4 2004

Q4 2005

Q4 2006

Q4 2007

Q1 2008

Number of listed core biotechs1

65

74

72

75

73

Market Cap of listed biotechs (including CSL) (A$bn)2

10.0

11.9

16.7

24.9

22.7

Market Cap of listed biotechs (excluding CSL) (A$bn)2

4.2

4.2

4.8

4.9

3.4

Number of IPOs for the calendar year1

15

9

1

4

0

(in Q1 2008)

Value of IPOs (A$m)1

154.5

65.0

3.0

81.6

0

1  Australian Securities Exchange website [http://www.asx.com.au]
2  Trading Room website: [
http://www.tradingroom.com.au]

The financial and employment data for the biotechnology sector shown in the table below are sourced from the 2006 and 2007 Beyond Borders: The Global Biotechnology Reports and 2005, 2007 and 2008 BioIndustry Review Australian & New Zealand reports. 

 

2003-04

2004-05

2005-06

2006-07

Employment for publicly listed biotech companies (number)3,4

N/A

9,180

8,350

8,820

Estimate of employment for public and private biotech companies (number) based on a private survey5,6,7

5,600

6,100

N/A

14,189

Turnover for publicly listed biotech companies (US$m)3,4

N/A

1,433

2,242

2,389

3  Ernst and Young, 2006, Beyond Borders: The Global Biotechnology Report 2006
4  Ernst and Young, 2007, Beyond Borders, The Global Biotechnology Report 2007
5  Lyndal Thorburn & Kelvin Hopper, 2005 BioIndustry Review Australia and New Zealand
6  Lyndal Thorburn & Kelvin Hopper, 2007 Bioindustry Review Australia and New Zealand
7  Lyndal Thorburn & Kelvin Hopper, 2008 Bioindustry Review Australia and New Zealand

Beyond Borders report (2006) financial data is based primarily on financial statements for the fiscal year ended June 30, 2005 and June 30 2004.

Beyond Borders report (2007) financial data is based primarily on financial statements for the fiscal year ended 30 June 2006 and 31 December 2006

Employment estimates for public and private biotech companies from Lyndal Thorburn & Kelvin Hopper, 2005 BioIndustry Review;  2007 BioIndustry Review; and 2008 BioIndustry Review based on surveys conducted in the financial year shown.

Companies with a market capitalisation in excess of $100 million, as at Q1 2008

  • Pharmaxis
  • Biota
  • Arana Therapeutics 
  • Cellestis 
  • Sirtex Medical 
  • Acrux 
  • ChemGenex Pharmaceuticals 
  • Avexa  
  • Clinuvel.