Feature
AusBiotech 2002
In brief: Senior Associate Jeff Bergmann discusses last week's AusBiotech 2002 conference, held in Melbourne.
So what should we make of the AusBiotech 2002 national conference and partnering/investment forum?
First, the event was an overwhelming success. One number alone speaks volumes: 1350. This is the number of delegates and is between two and three times more than previous annual ABA conferences. According to visiting US delegates, it compares to attendances at US BIO conferences during the mid 90s.
Second, it's worth noting what a packed program was on offer. From scientific issues and emerging technologies (monoclonal antibodies, animal derived biologicals, gene therapy, vaccines and immunotherapeutics, regenerative medicine, fermentation & bioprocessing), to legal, IP, patenting and licensing as well as business development issues including partnering strategies, lessons learned from maturing public companies ("growing pains") and the "listing experience", all aspects of the industry were covered. With 35 stream sessions, over 50 partnering and investment forum sessions, breakfasts, cocktail function, wine tasting, happy hour and conference dinner, this was a commendably imaginative line-up, excelling both in the breadth and the depth of the topics covered.
Third, government support for the industry shows no sign of abating. The Federal Minister for Industry Tourism and Resources delivered the keynote speech at the conference dinner and the Victorian Treasurer hosted the Partnering and Investment Forum dinner the following morning. Also prominently involved were the Department of Innovation and Information Technology, Queensland and the Government of Western Australia. Such support by these entities can only be good for the industry.
Fourth, whilst we needed no reminding of how good Australian research skills really are - especially in the area of Stem Cells where Professor Trounson and his team at the new Biotechnology Centre of Excellence are world leaders - it was refreshing and surprising to learn that we are not as bad at commercialising our research as the mantra would suggest. Established mid-sized companies such as Kinacia and Cerylid show that we can grow a company to a critical mass without succumbing to the temptation to go public prematurely. There are plenty of other public and private companies quietly succeeding in the large shadows cast by sharemarket leaders of CSL, ResMed and Cochlear. Presenters at the Partnering and Investment Forum showed that they are rapidly learning how to "talk the (commercialisation) talk" and will have gained valuable experience through simply preparing and presenting in that Forum.
Fifth, if you believe the international experts, biotech is here to stay and will be big. Australia is well-placed to capitalise on this success. Remove the 2000-01 bubble from the data and you see a trend of steady sustainable growth over the last decade and continuing into 2002.
The IPO market may have dried up but VC funds remain available for good opportunities (and an attractive investment is still assessed by the same criteria - good management team, sound business model, thorough business plan and quality IP). But VCs are being more selective in their investment selections and are increasingly looking to spread the risk through syndicated investments or co-investments with structured milestone-linked payments. Big pharma are leaving the R&D to nimble niche players and then seeking to partner with the best of those players. Success will come from creative partnerships and well-structured VC deals. "Serial entrepreneurs" (those who have "been around the block several times" and have a track record of building up a company and moving on to do it again, and again, successfully) and creative deal makers will be highly regarded in this brave new world.
Sixth, IP remains key in this field. Early securing of IP is paramount and one groundbreaking patent is better (and possibly cheaper and smarter) than a portfolio of several patents tinkering around the periphery of a field. IP owners also need to show that they have systems in place to identify capture and create IP and that they have thoroughly reviewed their Freedom to Operate position by conducting thorough due diligence on infringement risk and third party claims (employees/students etc).
Finally, let's congratulate those responsible - AusBiotech, the conference organising committee, the conference managers (Intermedia) and Katan and Associates International. The biotech industry owes these people a huge vote of thanks for arranging a forum where the spotlight is on biotech and all the industry participants can network together and conduct business.
For further advice, please contact Jeff Bergmann on +61 3 9613 8113.