In 2014, Asia accounted for about one-quarter of all global private equity deals in the health sector, having recovered more quickly than other regions from the financial crisis.
Asian companies will strengthen their position and acquire larger market shares than multinational companies (MNCs), especially in the low- to mid-tier technology space. Also the trend of private companies managing public hospitals and new private hospitals serving public insurance patients will gain traction.
Several factors will shape the Asia-Pacific healthcare industry over the next few years:
- IT adoption in primary and community care settings will increase
- Cell therapy, especially stem cell therapy for adult stem cells and embryonic stem cells, will become more active
- MNCs will prioritise R&D and launch strategies for the Asia-Pacific primarily to fight challenges such as infectious diseases in the region
- Asian centres are emerging as the most attractive hubs for biologics in Asia-Pacific.
- Customizing products to cater to local market needs will be another crucial strategy for companies to bolster their standing in the Asia-Pacific healthcare industry.
According to 2012 figures, the Asia-Pacific region has nearly 1 billion people over the age of 50. China had 394 million citizens over the age of 50, more than the entire population of the United States, compared with 317 million in India and just 7 million in Australia.
China – Healthcare Sector Overview
China lifted a cap on the level of foreign ownership allowed in private hospitals in a bid to attract more investment. McKinsey consultants have forecast that health spending in China will rise to USD1 trillion by 2020.
The Chinese government is driving the growth of the country’s private healthcare sector. China, the world’s largest nation with a population of over 1.3bn people, has inherited a largely hospital-based healthcare system managed by the National Health and Family Planning Commission of the PRC (NHFPC), provincial and local governments. This is supplemented by a vast cadre of local and village doctors in township clinics and a newly developed system of grassroots providers.
Government data suggest that just over 50% of hospitals in China operated in the public sector, which acts as the main provider of healthcare. Private hospitals typically cater to the needs of a smaller pool of middle class and more affluent citizens, medical tourists and expatriates. Children’s hospitals are popular.
Accordingly, while public hospitals in China have an average of around 280 beds each, the average private hospital has just 65 beds. Most of these small private hospitals started off as clinics. Furthermore, these hospitals lacked a sound financing model to support scalability. Over the past few years, many large hospitals have been built and opened across the country, with joint venture deals and acquisitions driving strong growth in this segment.
In 2012 the Chinese government announced ambitious plans to develop the private healthcare sector, in order to relieve the strains on the public healthcare system resulting from the rapid ageing of the population. A series of reforms that aimed to raise the proportion of hospital beds funded by the private sector to around 20% by 2015 has begun. One way that the government sought to ease the public sector burden was by raising the attractiveness of private investment into healthcare.
Under the 13th Five-Year Plan, discussions for which began in mid-2013, healthcare reforms are structured into three categories—infrastructure development, cost-reduction and expansion of insurance coverage—with the aim of identifying and nurturing new areas of investment.
Key initiatives include improving access for private investors to develop and acquire private hospitals, encouraging the development of private aged care facilities and home care services, developing more comprehensive medical insurance, expanding the scope of physicians’ insurance and establishing a more efficient mechanism for resolving disputes. In addition, the government is keen to nurture mHealth by encouraging investment in online healthcare products and information-sharing on cloud platforms.
The issue of recruitment is getting more onerous as private investors seek skilled staff for their newly built or managed private hospitals.
To support the development of the private healthcare sector, the Chinese government has taken active steps to remove regulatory barriers that previously acted as a deterrent to investors. One such step came in the late 2011, when the government announced that it would revise China’s Foreign Direct Investment (FDI) catalogue in 2012 to allow for up to 100% foreign ownership of hospitals under a Wholly Foreign Owned Entity (WFOE) structure. Previously, all investment had to be done via joint ventures with a minimum of 30% Chinese ownership.
In another key policy change in mid-2014 the Chinese government moved to allow domestic or foreign private investors to acquire and manage an existing public hospital.
Private hospitals in China are becoming increasingly integrated into the country’s public healthcare system. Selected private hospitals are now eligible to provide reimbursable treatment for patients funded through social healthcare insurance. In mid-2014 (latest data), 37 private hospitals in Beijing, 43 in Shanghai, 40 in Hangzhou and 17 in Harbin were earmarked to be included in this scheme. If this is extended more widely, then these private hospitals could begin to fill gaps left by the public sector.
China – BiotechSector Overview
China’s health biotech sector is already well established. With its vast resources China invested USD191 billion between 2005 to 2013 in research and development combined with the strengthening of the “Thousand Talents Program” which has repatriated scientists. The Recruitment Program for Foreign Experts is part of the government’s Thousand Talent Plan (千人计划), established in 2008 by the Communist Party’s Organization Department. The goal of the Recruitment Program for Foreign Experts is “to recruit non-ethnic Chinese experts, who are strategic scientists, leading experts in science and technology, or internationalised innovative teams capable of achieving critical technological breakthroughs, advancing the high-tech industries and promoting new disciplines.”
For example, China is a growing force in gene editing, with a burgeoning patent portfolio. More than 50 Chinese institutions are patenting in the field, led by the Chinese Academy of Sciences, universities, the Anhui Academy of Agricultural Sciences and Beijing Jifulin Biotech. Nearly a fifth of the 518 families of gene editing patents analysed since 2004 were associated with Chinese entities.
For top-tier institutions, the level of available resources is incredible in terms of the freedom, the flexibility that gives key leading Chinese scientists to move very, very fast on a given research track if a new opportunity arises.
It was reported that China’s government will invest RMB10 billion to support major new drug innovation, with RMB5–10 million in funding for each project on average from 2011 through 2015. Genetic drugs, protein drugs, monoclonal antibody clone drugs, therapeutic vaccines, and small molecule drugs are the main development focus.
Furthermore, 20 biotech zones have been set up nationwide, including zones in Beijing, Shanghai, Tianjin, Guangzhou, and Shenzhen, to improve independent innovation capability.
In addition, biological medicines have begun to gain presence in the market as research focuses on targeting the root causes of disease, to cure patients while minimising side effects. In fact, more than one Western biosimilar manufacturer has already found the Chinese market to be very competitive with strong domestic pharmaceutical capacity. Consequently, there have been quite a few strategic investments by global pharmaceutical giants within the past few years. In November 2009, Novartis announced that it was planning a USD1 billion investment over the next five years to expand its R&D activities in China, including further investment in the Novartis Institute of BioMedical Research (CNIBR) in Shanghai. In October 2010, Pfizer announced that its R&D centre in Wuhan had opened, with a particular focus on radiation biology and clinical trials. In the first half of 2011, Merck Millipore opened its USD2 million Biopharmaceutical Technical and Training Centre in Zhangjiang Hi-Tech Park, Shanghai.
China has seen double-digit growth in its biotechnology industry and has gone from being one of the slowest to one of the fastest nations in the adoption of new biotechnologies. The biotech sector is seen in China and internationally as a core area of national scientific and economic development.
The main national biotech body in the country is the China National Centre for Biotechnology Development. The CNCBD is an organization established on November 3, 1983 under the Ministry of Science and Technology with the approval of the State Council. CNCBD is the sole national centre to coordinate and implement the national S&T program in Biotechnology and Health.
China, in particular, has made growing the biotechnology industry one of its top national priorities. With more than one-fifth of the world’s population, it is an important market for biotech products and plays a key role in biotech product development and manufacturing.
Recognising the country’s great potential for sustained growth and global leadership in the industry, the Chinese government is sparing no expense to put companies and innovation on the map. The region is expected to issue its first set of regulatory standards for companies developing biosimilars, or follow-on biologics. The country is moving its pharmaceutical regulations closer to international standards, with the aim of speeding up drug registration.
Biosimilars Blueprint Biotechnology figures prominently in China’s 12th and 13thFive-Year Plans. Largely considered their blueprint for strategic economic growth and investment in the country, the plan highlights seven emerging industries that could transform China’s economy and drive growth.
As one of these seven pillars, the biotech industry will receive a large slice of the USD1.7 trillion pie the Chinese government allotted for the 12th plan’s implementation. China’s Minister of Health has pledged the country will spend an additional USD11.8 billion to advance biotech innovation from 2015 to 2020. Among the current priorities, China’s State Food and Drug Administration (SFDA) has begun to draft guidelines for biosimilar drugs, calling on scientists and entrepreneurs to actively participate in the process. The biological products division has established four working teams to encompass policy, quality control, and pre-clinical and clinical research. An additional consultation team comprising scientists, researchers and entrepreneurs from overseas and domestic companies is also in formation.
In contrast to bio similars, the SFDA has implemented regulations supporting speedier regulatory review of ‘new drugs for special approval’ since January 2009. This special approval status streamlines communications and reviews with SFDA during the application process and may also reduce the data submission requirements. Often called the ‘green channel’ – this pathway covers new treatments for AIDS, cancers and rare diseases; new drugs targeting diseases without effective treatment; drugs and biological products that have not been approved worldwide; and biological extracts new to the Chinese market.
Japan – Healthcare Sector Overview
The health care system in Japan provides healthcare services, including screening examinations, prenatal care and infectious disease control, with the patient accepting responsibility for 30% of these costs while the government pays the remaining 70%.
Payment for personal medical services is offered through a universal health care insurance system that provides relative equality of access, with fees set by a government committee. People without insurance through employers can participate in a national health insurance = program administered by local governments. Patients are free to select physicians or facilities of their choice and can not be denied coverage.
Japan’s Universal Healthcare System is now being revamped by the current Prime Minister Shinzo Abe as popularised by Abenomics. Prime Minister Abe’s growth strategy calls for the promotion of the pharmaceutical, medical device and biotechnology industries. The strategy includes measures such as accelerating regulatory approvals and eliminating so-called “medical device lags” and “drug lags” in market introduction.
In Japan, services are provided either through regional/national public hospitals or through private hospitals/clinics, and patients have universal access to any facility, though hospitals tend to charge more to those patients without a referral.
As above, costs in Japan tend to be quite low compared to those in other developed countries, but utilisation rates are much higher. Most one doctor clinics do not require reservations and same day appointments are the rule rather than the exception.
Japan has about three times as many hospitals per capita as the US and, on average, Japanese people visit the hospital more than four times as often as the average American.
Hospitals, by law, must be run as non-profit and be managed by physicians. For-profit corporations are not allowed to own or operate hospitals. Clinics must be owned and operated by physicians.
Japan – Biotech Sector Overview
The biotechnology industry occupies an important position in 21st century Japan and was valued at 2.75 trillion yen (approx. USD34.5 billion) in 2012. The Japanese pharmaceutical market is the world’s secondlargest, with sales of over USD90 billion in 2012. At 12% of the global market, it is bigger than France and Germany combined.
The current of open innovation promotes the growth and activities of Japanese biotechnology companies (currently over 500) and the growth of their licensing out of contracts.
The competitiveness of the Japanese biotechnology industry is largely underpinned by the country’s high share of biotechnology patents filed under PCT and the high amount of biotechnology R&D expenditures in the business sector.
The Japanese government recognises biotechnology as a key driver of future economic growth and strongly supports both domestic biotech initiatives and its global development. The regenerative therapy, especially the therapy using iPS cells, is accentuated through support by the government. Collaborative development of Japanese biotechnology business with foreign activities is greatly welcomed.
Japan has a number of research based pharmaceutical companies that are operating on a global basis, including Takeda, Astellas, Daiichi Sankyo, Eisai, Otsuka, Mitsubishi Tanabe, Chugai, Shionogi, Kyowa Hakko Kirin, Dainippon Sumitomo. These companies are actively looking for collaboration opportunities with new and innovative pharmaceutical companies. The market for biologics such as antibodies, protein based drugs and vaccines, has been increasing and companies including Chugai, Kyowa Hakko Kirin, Takeda, Mitsubishi Tanabe are some of the key players in this market.
Japanese pharmaceutical companies are expanding geographical coverage and therapeutic areas by M&A activity. One such example is Takeda’s acquisition of Millennium and Nikomed.
While some emerging markets are growing at a rapid pace, Japan remains to be an attractive investment market for having a high% age of new drug sales. Domestic drug production is worth ¥6.9 trillion (approximately USD70 billion) in 2011, of which prescription drugs account for 90% of production, while over-the-counter (OTC) drugs account for the remaining 10%.
Japan has one of the world’s fastest ageing populations. As a consequence, its population is facing an increasing number of chronic and long-term diseases.
- Demand for joint development, outsourcing of R&D, clinical trials and regulatory affairs
- In view of patent expiration of blockbuster drugs and pressures from generics, most opportunities will be in out-licensing of drugs, especially for age-related, non-communicable diseases including cancer, cardiovascular and CNS
- Increasing development of antibody drugs by Japanese pharmaceutical companies
- Drug Delivery Systems (both original and generic manufacturers)
- Bio-marker development
- Services to help faster drug development
- Diagnostic companies are also looking for products or unique technologies that can improve diagnostic/detection processes and for the development of companion bio-markers. Diagnostic companies are looking to expand overseas to offset the sales in a saturated market. Business opportunities with diagnostic companies result in potential wider market opportunities.
South Korea – Healthcare Sector Overview
Healthcare in South Korea is provided by compulsory insurance from the National Health Insurance Corporation (NHIC), a public non-profit organization, and is the single insurer. The NHIC is responsible for providing healthcare benefits to the population, collecting contributions and reimbursing providers on a fee-for-service basis.
Everyone resident in the country is eligible regardless of nationality or profession. Foreigners living in South Korea who are registered with the NHIC receive the same medical benefits and services as Korean nationals.
The Ministry for Health, Welfare and Family Affairs (MIHWFA) is responsible for the health of the population, and has a supervisory role in health insurance policy. Universal medical coverage is achieved through a mandated National Health Insurance programme introduced in 1977 and extended to the entire population by 1989.
The Health Insurance Review and Assessment Service (HIRA) reviews the cost of healthcare benefits and evaluates the reasonableness of healthcare services provided by medical institutions.
Only authorised healthcare professionals can provide health services. The majority of the financing is covered by the social insurance payments, government sources. About 21% are non-covered services, for which patients pay in full, mostly medical imaging fees, including ultrasound and partially for MRI. Most medical examinations and diagnostic procedures have predetermined fees, which consist of the patient share and the national share, with the patient share usually less than the national share. Most medical fees and surgical costs are affordable and, in some circumstances, the fees are limited according to the disease category. Most radiology examinations and procedures are covered by the National Health Insurance Program.
The healthcare market in Korea is concentrated in five main cities — Seoul, Pusan, Daegu, Daejeon and Kwangju. Together, these cities contain nearly 60% of Korea’s hospital beds. In 2012, Korea had 277 mid-sized general hospitals, 40 university hospitals, about 2,450 small hospitals and close to 28,000 clinics. The country also had 15,100 dental hospitals and 12,500 traditional medicine hospitals.
High quality healthcare is available in South Korea in general hospitals, oriental hospitals (which use traditional eastern medical practices), public health centres and private hospitals. There is a three tier provision of medical facilities, depending on the size and the number of departments.
Primary care services are provided through clinics, hospitals and general hospitals. Patients can choose their medical provider and visit primary and secondary hospitals without a referral. Patients must have referrals from primary and secondary hospitals or a primary care physician to be treated at tertiary hospitals. When patients are referred to tertiary medical institutions, hospital selection is unlimited, and there is practically no delay in scheduling a medical examination when a patient transfers from the primary or secondary healthcare institution to the tertiary healthcare institution.
Oriental medicine is another main component of healthcare in Korea. Some oriental medicine doctors use imaging tools including US, CT and MRI, which is becoming a problem for radiologists in Korea.
South Korea – Biotech Sector Overview
Korea’s domestic biotech industry was valued at AUD5.6 billion in 2012. Biopharmaceuticals accounted for AUD2.8 billion (50%) of the total domestic market, followed by bio food at AUD1.3 billion (23%) and bioenergy and resources at AUD554 million (19.8%). Korea’s total domestic pharmaceutical market was valued at AUD17.2 billion in 2011.
Korea is the 13th largest international pharmaceuticals market, accounting for some 1.5% of global market share in 2012. By 2020, the Korean government aims to become the 7th largest pharmaceutical producing nation, accounting for 4.5% of the total global market. The Korean pharmaceuticals market has traditionally been generics-oriented, but recent industrial investments have enabled an increased focus on new drug discovery. The market was worth around USD15.5 billion in 2012 with an annual growth rate of around 8%. Since 1999, Korea has developed 19 unique new drugs.
Significant areas of opportunity for pharmaceutical companies include:
- Biopharmaceuticals, owing to the Korean Government’s strong support for generics (e.g. protein therapeutics)
- Cardiovascular and metabolic disease, especially with the increasing prevalence of diabetes
- Oncology, stemming from increases in early diagnosis and detection of cancer and targeted treatment of the top three types of cancer: lung, gastric and liver cancer
- Medical devices for the treatment of chronic diseases, with the ageing population.
The biotech industry is one of the fastest growing industries in Korea and has grown rapidly with a constant annual growth rate in excess of 10%. Korea is the 8th strongest biotechnology nation globally with particular technology advantages and skills in stem cell research.
The Korean biotechnology industry boasts approximately 600 companies grouped into four regional areas (Osong, Daejeon, Jeonlla and Kangwon). Around 70% of Korean biotechnology companies specialise in biomedicine and biopharmaceuticals, with the remainder focused on bioprocessing and equipment.
The Korean government considers biotechnology as the next new growth engine for the nation. Thus, there is strong government support for the acquisition of core technologies and the development of biotechnology infrastructure. The South Korea bio pharmaceutical market was forecast to reach a value of USD1.6 billion during 2013, with further growth expected. The Korean Government is a strong supporter of R&D in the biotech sector. The government announced that they will allocate 15 billion won for 2015 to help local biopharmaceutical companies with promising products expand internationally. This allocated budget will go toward supporting R&D projects that can be commercialised from 2015 to 2018.
There are 79 local pharmaceutical companies operating in the Korean biomedicine and biopharmaceuticals sector and a combined total of 86 research laboratories. R&D spending as a proportion of sales is currently estimated to be between four and six per cent and personnel make up almost 12% of the total pharmaceutical sector workforce. Most research projects fall into the cancer, anti-infective, metabolic disease and immunology.
The Korean medical device market accounts for 1.3% of global market share. The market was worth around USD3.3 billion in 2012 with an annual growth rate of around 7%. The market is mainly serviced by imports, accounting for 65% of the total market, largely from the US, Germany and Japan.
There is a growing demand for drugs to treat lifestyle related diseases such as hypertension, diabetes, and cancer.
Korean companies are looking for overseas technology and experience, which they can license in and further develop. The clinical trials are becoming more commonplace locally, but there is high demand for International partnerships to conform to global standards. There is a strong demand for both licensing in and out of pharmaceutical products and technology. Korea has strong credentials in the traditional fermentation, antibiotics and diagnostic industries.
Global outsourcing, partnerships and M&A are also becoming a more accepted approach to R&D and product development in Korea.
There is a strong demand for imported medical devices such as dental equipment (especially dental implants), radiotherapy/imaging equipment, and orthopaedic equipment.
Australia exported AUD564 million worth of pharmaceutical products (including vitamins) to Korea in 2012-13, our second largest market. The Korea Australia Free Trade Agreement (KAFTA) will strengthen and expand our bilateral relationship by building on existing and developing new relationships in the biotechnology sector. KAFTA will open up significant new opportunities for pharmaceutical exporters. KAFTA was entered into force on 12 December 2014, so tariffs on almost 90% of pharmaceutical products have been eliminated and the remainder phased out by 2016.
Australian healthcare facility operators have expertise in IT, documenting protocols, procurement systems, labour management, billing arrangements and other systems that were transferable. In effect, a whole range of core competencies could be packaged up neatly and taken into the Asian markets, particularly China.
Excellent research facilities, world-class scientists and a strong but flexible regulatory regime have made Australia a powerhouse of biotechnology and pharmaceutical innovation. International benchmarking by the EIU considering a range of industry indicators, including clinical trials, the IP system, and the regulatory, and business and investment environments, ranks Australia well for the competitiveness of its biotechnology and also as a location to conduct clinical trials.
Health Care is Australia’s largest industry.
The 2011 Census 2nd release revealed the largest employer of workers in Australia is now the Health Care and Social Assistance Industry.
The industry employs 1,167,000 of Australia’s 10 million workers nationwide (11.6% of all workers). This was up by 211,000 in 5 years to be more than 100,000 higher than Retail Trade, the next largest, which was the largest industry in 2006. It had just overtaken manufacturing in the previous Census. Manufacturing continued to slide, losing another 50,000 workers, to employ 9.0% of the workforce.
The massive increase in employment in Health Care is quite a profound change and represents the continuing shift from primary and secondary industries to the service industry sector, and also the ageing of the population.
Australia’s health system is complex. It can perhaps be best described as a ‘web’ of services, providers, recipients and organisational structures. In 2011-12, health spending in Australia was estimated to be AUD140.2 billion, or 9.5% of GDP. The amount was around 1.7 times as high as in 2001-02, with health expenditure growing faster than population growth.
Health care in Australia is provided by both private and government institutions. The federal Minister for Health, currently Sussan Ley, administers national health policy, and state and territory governments administer elements of health care within their jurisdictions, such as the operation of hospitals.
Medicare, administered by the federal government, is the publicly funded universal health care system in Australia which was instituted in 1984. It coexists with a private health system. Medicare is funded partly by a 2% Medicare levy (with exceptions for low-income earners), with the balance being provided by government from general revenue. An additional levy of 1% is imposed on high-income earners without private health insurance. As well as Medicare, there is a separate Pharmaceutical Benefits Scheme also funded by the federal government which considerably subsidises a range of prescription medications.
The funding model for health care in Australia has seen political polarisation, with governments being crucial in shaping national health care policy
Complexity is unavoidable in providing a multi-faceted and inclusive approach to meeting the health system needs of Australia’s many and varied residents, when those needs are shaped by many and varied factors, including gender, age, health history and behaviours, location, and socioeconomic and cultural background.
Behind the scenes of the health system is a network of governance and support mechanisms that enable the policy, legislation, coordination, regulation and funding aspects of delivering quality services. Planning and delivery of services is shared between government and non-government sectors.
This growth can be attributed in part to societal changes such as population ageing, and to increased prevalence of chronic conditions, diseases and risk factors. Personal incomes, broader economic trends and new technologies also affect spending on health. In summary, our health does not exist separate to the rest of our society. Rather, the two are intertwined, and our nation’s spending on health services reflects this.
A ‘healthy’ system is fundamental to Australia’s national and personal wellbeing, and prosperity.
Although public hospitals are funded by the state, territory and Australian governments, they are managed by state and territory governments. Private hospitals are owned and operated by the private sector. The Australian Government and state and territory governments fund and deliver a range of other health services, including population health programs, community health services, health and medical research, Aboriginal and Torres Strait Islander health services, mental health services, and health infrastructure.
Health Infrastructure and Services
Australia can offer many services to Asia partners including:
- Specialist and alternative health services such as acupuncture, homoeopathy and naturopathy
- Hospital and health facilities design, architecture and interiors
- Hospital management
- Delivery of turnkey hospital solutions via a HealthTeam Australia consortium
- Health consultancies (including hospital accreditation), particularly in developing economies
- Tele-health services such as tele-radiology or outsourced back office support
- Medical staff recruitment services
- Healthcare professional training and education
- Aged care services
- Pathology/diagnostic services/DNA testing
- Medical tourism
Australia is regarded as one of the best places in the world to conduct clinical trials. It boasts world-class medical research and healthcare infrastructure, a stable socio-economic environment, an ethnically diverse population and a strong intellectual property regime.
Australia’s digital health industry has a long history of using innovative communications technology to improve healthcare delivery.
Health IT includes:
- Health messaging
- Electronic health record
- Hospital management and patient administration systems
- Clinical information systems, e.g. pharmacy, pathology
- Asset management and supply chain management
- Health payment solutions
The health information technology and informatics field is a rapidly expanding sector both in Australia and internationally. Australia’s large geographic size has driven advancement in technology for delivering health services across diverse areas, making Australia a global leader in areas such as health messaging and electronic health record architecture.
Hospital spending on health IT initiatives also drive the industry and innovative technologies have emerged in electronic information sharing with general practice and specialised physicians, community, mental health and aged care providers.
Medical Devices & Diagnostics
Australian medical technologies are making a global impact; solutions such as the cochlear implant (bionic ear) and continuous positive airway pressure (CPAP) devices for sleep apnoea are just two Australian inventions that have transformed the lives of people around the world. These include:
- Imaging/monitoring equipment
- Biomedical devices and implants
- Surgical equipment, general hospital supplies
- Diagnostic devices
- Laboratory equipment
- Dental equipment
- Health-related software
- Drug delivery
Medical devices in Australia are regulated by the Therapeutic Goods Administration (TGA). The TGA uses a risk-based approach to assess devices before they are entered onto the Australian Register of Therapeutic Goods.
Australia’s medical device industry can list among its distinct competitive advantages its reduced time to market compared with drug discovery, its comparatively highly skilled workforce and its geographic position within the Asia Pacific region.
Australia offers world-class products, services and expertise to help other countries meet the challenges of an ageing population and has many decades of experience in aged care delivery.
Australia’s competitiveness has helped it become home to a thriving network of more than 470 biotechnology companies (private, government sponsored and listed). Of these, half is involved in therapeutics, with agricultural biotechnology and diagnostics also featuring.
Australia’s comparative advantage in biotech comes from its world-class science and medical research, its capacity for international partnerships, cost effectiveness, and a transparent and effective regulatory system. CSL is Australia’s largest biotechnology company. The emerging trends of Foodtech and Cleantech have gained momentum, and the Medtech sector is surging forward, to follow in the footsteps of Medtech industry pioneers, Cochlear and ResMed.
Australia is home to numerous world class medical research organisations, including the Garvan Institute, Institute for Molecular BioScience, Menzies Research Institute, John Curtin School of Medical Research, Walter and Eliza Hall Institute of Medical Research (WEHI), Australian Institute of Bioengineering and Nanotechnology, Brain Institute, Diamentina Institute, The Lowy Research Centre, Victor Chang Cardiac Research Institute, Baker Medical Research Institute, The Burnett Centre and South Australian Research & Development Institute.
Australian state governments are developing and implementing independent regional initiatives. Each has strong medical research programs, some having specialist expertise in areas including tropical medicine, bio-discovery, regenerative medicine, bioremediation, agricultural/industrial biotech and medical devices.
Australia is achieving its vision of a successful bio-economy. The latest Scientific American, Worldview Scorecard 2013 ranked Australia number seven in biotechnology in the world, up from number ten last year. Australia ranked best in the world for the “Best growth in public markets” and second globally for “Greatest public company revenues” and the “Most public companies”.
Despite the challenges of the global economy and the degree of difficulty in building a biotechnology and life sciences sector from scratch, Australia is doing very well by any comparative measure, with an impressive return on investment from a maturing stock of quality companies. Australian biotechnology boasts a raft of success stories and a world-class industry.
Since its emergence in the early to mid-nineties, the biotechnology industry in Australia has achieved a great deal. Biotech Daily reported that its ‘Top 40’ Index of listed biotechnology companies ended 2013 up 18.1% in 2013, compared to the benchmark S&P ASX 200 15.1% up for the year.
ASX – Healthcare
Healthcare makes up 7.5% of the ASX 200 index and 7.2% of the All Ordinaries index.
Australia’s 88 ASX-listed biotechnology companies are valued at more than AUD51 billion (BioForum, April 2014) – a great contribution to the bio-economy.
GC Partners Asia Capabilities
- GCP is uniquely positioned and committed, with experienced tertiary qualified bi-lingual staff, to provide investment banking, corporate finance and advisory services to companies involved with the global mining industry.
- We act for private companies and companies listed on the LSE & AIM, ASX and TSX & TSXV stock exchanges. Being located “on the ground” amongst the key Asian markets, GCP is attuned to local business practices, conduct, processes & culture, as well as news flow, corporate announcements, government policy and economic initiatives. Combined with regular contact and our long standing relationships with key industry participants, we are equipped with an understanding of the demand and the potential for sources of corporate equity investment, project equity & debt, joint ventures, and for product offtake.
- With Australia’s proximity to the key Asian markets, and combined with GCP’s strong differentiation, we are able to assist a variety of mining & resource companies with their financing requirements who have projects along the full value chain,from exploration, to development& production.
- Our current and past clients have projects in iron ore, copper, gold, nickel, graphite, kaolin, potash and phosphate. These projects are located in Australia, Africa, Central Asia and SE Asia.