The Covid-19 pandemic highlighted Australia’s biotechnology sector, as companies worked to develop vaccines and treatments for the virus. AusBiotech has seen a 40% growth in company numbers and 27 new biotech and medical technology companies listing on the ASX over the past two years. The organisation is now hosting an investment conference in Perth where up to 30 companies will pitch their work to investors. Dr Arjun Goyal, co-founder and MD of Vida Ventures, a US-based life sciences venture capital firm with approximately $1.7 billion in assets under management, is a key speaker. He believes that venture capital has a critical role to play in biotech company development, and that the long-term outlook for the sector is rosy.
Dr Goyal notes that science is the most important factor in biotech investments, followed by the quality of the team and access to capital formation. While the US has strengths in all three areas, Australia has world-class science in oncology, immunology, and virology, but lacks the depth and breadth of the capital markets to support biotech that exists in the US. He sees opportunities for investment in Australia in these areas, but notes that Australian companies still need to access global capital to fund their programs. Despite the current macroeconomic headwinds, Dr Goyal is confident that the mid to long-term outlook for the biotech industry is very positive, as we enter a “golden era” in biomedical innovation. He believes that combining science with entrepreneurial teams can help carve out Australia’s place in the highly competitive industry.
