Singapore, Feb 22, 2008: Australian and New Zealand biotechnology companies are performing surprisingly well, despite low share prices, poor media interest and funding difficulties, according to a recent report by Innovation Dynamics.

The data and the analysis by Innovation Dynamics reveal that a number of major biotechnology and medical devices companies will complete pre-market clinical trials in the next couple of years and launch new products. In addition, the study found that the number of companies involved in clinical trials increased 40% over the 12 month period, with over half of these companies entering into later stage, phase II or III trials.

“We have been monitoring the industry for many years and we believe it poised for real growth as the top companies start to earn revenues for the first time. With the current depressed market there are clearly opportunities for investors, but they need to do their homework to pick those biotechnology and medical device companies that have substance and strong management,” said Dr Kelvin Hopper, Executive Chairman of Innovation Dynamics and coauthor of the Review

Further analysis of the biotechnology sector showed that over 460 research and commercialization alliances were announced between the life science companies and major research institutions. Over 70% of these alliances were with overseas organizations.

Dr Kelvin Hopper, further said, “These alliances are essential to strengthen these companies and increase the chances of their reaching specified milestones and markets. There has also been greater use of hybrid business models as companies try to balance the need for development funds with revenues generated from the sale of products or royalties or investor finance. Medical devices companies especially are doing well, with more than half of the listed companies receiving over $1 million in revenues from operations. We expect to see more companies using hybrid models in this financial climate and this may drive mergers and acquisitions activity.”