Biotechnology in Australia

Biotech in Australia: state of play

The Australia-New Zealand market is considered as one of the top ten bio-IT environments in the world, according to market research statistics.

Analyst firm IDC expects bio-IT adoption to increase at a compound annual growth rate (CAGR) of 37 percent, fuelled by both public and private investments as organisations adopt new biology methods in the area of life sciences.

In fact, IDC research data indicates that by 2006, bio-IT spending in Australia and New Zealand will grow to US$655 million.

While the the private sector dominates the Australian biotech market, it's the opposite in New Zealand, with the academia playing a major role.

IDC predicts that by 2006, the private sector will increase its share of the bio-IT market, with the largest jump occurring in New Zealand, which is expected to increase its revenue share from 14 percent to 30 percent of bio-IT expenditure.

Large New Zealand pharmaceuticals are also expected to mature, increasing its share of bio-IT expenditure from 17 percent in 2001 to 23 percent in 2006.

"However, ANZ is more likely to lose than gain market share in the regional bio-IT sector as other countries such as Singapore, India, China and Taiwan ramp up their investments and focus on growing their life sciences market," said Daphne Chung, senior analyst for Life Sciences and Healthcare Research at IDC.

The Asia-Pacific biotech market might be right for the picking for some but other players are homing in on opportunities in Southeast Asia. Dr Mervyn Thomas, founder of bioinformatics consultancy Emphron Informatics, is one such person.

Thomas hopes to concentrate on that part of the region as opposed to Australia since "more money is being invested there", he told ZDNet Australia  in a recent interview.

There also seems to be a longer period for return on research investments in Australia despite the country's solid standing as a research hub.

"Australia has a very good reputation in the region for its scientific capability, and that's something we can build on. There's also a high regard for our skills and we do well despite the fact that our budgets are smaller," said Thomas, who used to manage the bioinformatics research programme at Australia's CSIRO Mathematical and Information Sciences.

However, Australian research tends to be more basic rather than high-throughput. "I won't say less valuable, but the stuff with less immediate commercial return," Thomas explained.

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