Australia India Business

A Connected Universe

Strong collaboration with India exemplifies Australia’s commitment to boosting collective outcomes for the growing Asia-Pacific biotechnology network, writes AusBiotech’s Anna Lavelle.

Dr Anna Lavelle, CEO, AusBiotech

It makes perfect sense for India and Australia to collaborate on biotechnology projects. The biotechnology capabilities of both countries are growing, but we are still relatively small players in comparison with traditional giants such as the United States (US).
Australia and India already enjoy a solid relationship and have begun science and research collaborations in a number of areas. This is set to strengthen and grow in years to come. Indeed, AusBiotech, Australia’s biotechnology industry organisation, has taken two trade missions to India in the past two years together with the Australian Government.
Representatives of some 30 companies and universities saw first-hand the incredible growth of the Indian biotech industry – estimated at 30-35% a year – and were able to examine potential business opportunities at specific business seminars and networking events. Delegates on both missions reported successes in their investigation of business opportunities.

Matchmaking

In 2006, the Australian Government took a major step forward, together with the Indian Central Government, in establishing the Australia-India Strategic Research Fund. Each government will provide A$20 million over five years for collaborative research projects in areas such as transgenic crops, stem cell therapies, plant neutraceuticals, nanotechnology and bioremediation.
Last year an agreement was signed at India’s major biotechnology conference, Bio Bangalore, between Australia’s Deakin University and Biocon, India’s largest biotechnology company. The memorandum of understanding (MoU) included the establishment of a Deakin Research Institute in Bangalore. It also sought to develop a business case to jointly bid for a A$10 million Australian Government grant to develop a mammalian cell bioprocessing facility at Deakin’s Geelong Technology Precinct.
There are also a significant number of research collaborations between Australian and Indian universities, including programs at The University of Melbourne, Monash University, Queensland’s University of Technology and the Queensland Institute of Medical Research.

Deakon University's Geelong Technology Precinct

International alliances

Of the 399 alliances announced in 2007 between Australian biotechnology and medical device fi rms, 70% were with overseas partners, including 57 deals with partners in Asia.
Some examples of deals struck in India include:
• an agreement between Symbion Healthcare (Australia) and Strides Arcolab Limited (India) to develop and manufacture injectable noncytotoxic products for the US market;
• an MoU between Zydus Cadila (Indian healthcare leader) and Symbion for a manufacturing joint venture for the construction and operation of manufacturing facilities in India;
• the acquisition of Australian agribiotech company Technico Pty Ltd by diversified Indian major ITC Ltd, as part of its strategy to strengthen its foods business; and
• Mumbai-based Ipca Laboratories’ acquisition of an Australian formulation product dossier registrationcum- distribution company (now known as Ipca Pharma Australia BTY) to enable it to register formulations in Australia.

Enormous potential exists for the two countries to build on each other’s efforts and strengths. With strong government support for the industry and rapidly expanding infrastructure, India is most interested in attracting Australian companies when ready to manufacture. With about half of its population aged under 25 years, India provides an attractive pool of skilled labour for Australia, which is beset by labour shortages.
In turn, Australia has a strong culture of innovation and research with a long history. Australian scientists have been responsible for some impressive bio-medical breakthroughs, including the cochlear hearing implant, a vaccine to prevent and treat cervical cancer, and the world’s first antiinfluenza drug, Relenza, which is now sold in more than 50 countries.

Global influence

As the fifth-largest biotechnology industry in the world (after the US, Canada, Germany and the UK) Australia has significant influence on the global stage. The annual AusBiotech National Conference is the world’s second-largest biotechnology conference – and arguably the largest in the Asia-Pacific region – in terms of international participation and overall delegate numbers.
Australia has notable strengths in the niche areas of biotechnology and medical devices – both of which involve value-adding, high-end manufacturing, and the development and manufacture of biological and diagnostic products. These strengths include an intellectual property (IP) regime recognised as the fifth strongest in the world, and an excellent reputation for its clinical trials capabilities. A 2005 pharmaceutical benchmarking study by the Economist Intelligence Unit ranked Australia first for the conducting of clinical trials in a group of leading research and development (R&D) countries.
Business has a strong record of support for R&D in Australia. According to the Australian Bureau of Statistics, business spending on R&D was A$10.1 billion in 2005-06, an increase of 11.8% on the previous year. Australia also offers a highly-skilled workforce from a diverse and multicultural population. Moreover, Australia’s political stability and reputation for good corporate governance adds to its attractiveness as an overseas investment destination.

Regional commitment

Successive Australian governments have backed a strong Asia-Pacifi c focus and better ties with our regional neighbours. Prime Minister Kevin Rudd has spoken of his desire to make Australia the most ‘Asia-literate’ country in the collective West. He told the Asia Society AustralAsia Dinner earlier this year: “We need to have a vision for an Asia-Pacific community – a vision that embraces a regional institution that spans the entire Asia-Pacific region, including the US, Japan, China, India, Indonesia and the other states of our region.”

Australia’s collaborations with India are a good example of how the Asia- Pacific network is providing dividends in the region. AusBiotech is drawing the attention of Asia-Pacific investors to opportunities in Australia as one of the lowest-cost business locations in the industrialised world. As global market instability has significantly impacted on markets, including the biotech sector, investors could find value in the biotechnology sector due to a downturn in the stocks of companies that are demonstrating consistently strong performance.
Indeed, despite recent uncertainty in global markets, the Australian biotech industry continues to strengthen. In 2006-07 there was a 60% increase in market capitalisation, with a total value of almost US$20 billion, generating US$2.83 billion in revenue. Australia’s product pipeline has never before been so deep or so advanced.

BioNet Asia Pacific

India, through the Association of Biotechnology Led Enterprises (ABLE), is a member of a newlyformed network of 10 Asia-Pacifi c countries, BioNet Asia Pacifi c (BNAP). BNAP’s members are the biotechnology industry associations of Australia, India, Japan, Malaysia, New Zealand, Taiwan, Singapore, South Korea, Thailand and the United Arab Emirates.
Launched in 2007, it operates as a virtual network for members of biotechnology industry organisations in participating countries. Corporate and Institutional members of the industry associations can access a closed website, which details the companies working in each country.
One of the many strengths of the program is its identification and description of the capabilities of unlisted companies. The initiative forms the key plank of a strategy to centralise opportunities and strengths from the region into a connected universe.

Solid foundations

As the industry grows in countries such as China and India, collective outcomes for the region are set to improve and the balance is likely to shift towards the positioning of the Asia-Pacific as a key global region of innovation and business.
Revenues of publicly-traded biotechnology companies in the Asia- Pacific region grew by 21% in 2007, far outpacing top-line growth in the US and Europe. Despite this, the region’s biotechnology sector broke even in 2007, led by the Australian industry.
Solid foundations for development are crucial to the continued success of the region’s biotech sector – of primary importance are strong IP protection, robust regulatory regimes, inter-country collaborations, cross border investment and support for innovative start ups.
Each nation offers complementary strengths and it is imperative that, as neighbours, we work together to leverage those strengths for the good of each nation’s biotechnology industry. A global industry demands collaboration and partnering.
The increased proportion of international alliances reflects the need for globalisation in the industry in order to succeed in the market. Australia, like India, welcomes opportunities to facilitate this growth and is committed to working in the region – for the good of the Asia-Pacific biotechnology industry.

Dr Anna Lavelle is CEO of AusBiotech, Australia’s not-for-profit biotechnology industry association, representing the interests of 3,000 members in the fields of human health, biopharmaceutical, industrial, agricultural and environmental biotechnology.

Websites:

www.ausbiotech.org
www.bionetasiapacific.com

Reprinted in full from the print edition of Australia India Business 2009.

Tags: ABLE, Biocon, BioNet Asia Pacific, BioTech, BNAP, Deakin University, Dr Anna Lavelle