Why so many Aussie Biotechs Fail

Oct 6, 2023

Our managing Director, Dr Charlie Williams PhD, was interviewed by Jared Lynch from The Australian this month, talking about the differences between the Australian and US Biotechnology sectors. 

Read the article in The Australian Here: Why do so many Aussie Biotechs Fail

At HB Biotechnology, we invest in global, listed biotechnology companies and our portfolio is >80% weighted to offshore companies – and most of these are located in the United States.  There are many reasons for this weighting towards US stocks and relatively few listed Australian biotechnology companies:

  • The US is a much more sophisticated market when it comes to investment in biotechnology.
  • The US biotechnology sector attracts specialist biotechnology investors (largely absent in Australia, especially in listed markets)
  • The US biotechnology sector attracts far greater capital allocation and liquidity than Australia
  • And as a result of the points above, the US has far more good quality investment opportunities to choose from.

However this is despite Australia being the most productive generator of biomedical research in the world on a per capita basis, and ranked 4th in the world in absolute terms.

Australia is the number one jurisdiction for biomedical research output per capita and ranked #4 in the world on raw publication volume

So why does Australia lag so far behind the US when it comes to commercialisation of biotechnology?

Read the article in The Australian Here: Why do so many Aussie Biotechs Fail

Note – the article may be behind a paywall, in which case a pdf copy of the article can be accessed here