The COVID-19 pandemic has highlighted the importance of the life sciences sector, which was already a significant industry in Australia. In 2021, the sector experienced a record-high for capital raising, and it has grown by 43% over the past two years. The growth can be attributed to increased focus on developing vaccine production capacity and medical products, as well as the flourishing digital health sector.
Medical Technologies and Digital Health have been dominating the field, followed by Pharmaceuticals and Food and Agriculture Biotechnology. To establish Australia as a life sciences hub for Southeast Asia, the government needs to support the sector by investing in R&D and skills development, and by framing regulatory and tax policies that impact the sector.
However, biotech companies are facing challenges such as difficulties in translating research into competitive products, supply chain disruptions, and struggles to raise fresh funds. To counter these challenges and ensure continued growth, there has been significant investment into supporting businesses in a post-COVID world, with a focus on encouraging Australia’s economic recovery and capturing more value locally as part of domestic and international supply chains.
