Updated on 29 May 2012
The new research and development tax incentive policy has helped boost innovation in the industry
Despite concerns over the operating environment in Australia and predictions of receding demand in the domestic market, the bioscience industry in the country is reflecting bullish sentiments. In the Annual Biotechnology Industry Position Survey 2012, conducted by AusBiotech and Grand Thornton, 82 percent of the respondents-Australian Stock Exchange (ASX)-listed life sciences companies and AusBiotech member companies including unlisted members-were positive about the growth of their business in 2012.
The pharmaceutical market in the country is expected to grow at a compound annual growth rate (CAGR) of two percent to reach $12 billion in 2015 from $11 billion in 2011, according to Frost and Sullivan report. It is expected to fare better in the medical devices segment (13 percent CAGR), healthcare IT (10.7 percent CAGR), medical imaging (6.2 percent CAGR) and diagnostics (6 percent CAGR), but will be ranked below India, China, Japan, and South Korea in some cases.
The PricewaterhouseCoopers (PwC) BioForum April 2012 report says that during the period between January and March 2012, market capitalization of Australia's life sciences industry grew 11.7 percent to reach $36.6 billion (A$35.1 billion), while that of biotech and pharma industry rose 4.5 percent. This is a positive trend this fiscal, given that the industry recorded a 12.8 percent fall in the life sciences index in the July-September quarter of FY12.
Australia has more than 400 biotechnology and 600 medical technology companies. As of June 30, 2011, the industry has 102 ASX-listed companies with a market capitalization of $37.6 billion (BioForum report August 2011, PwC).