WholesaleInvestor

05 May 2010

Australia - punching above its weight in healthcare

By Steve Hobbs, Director, Achieve Capital

Healthcare in Australia is a very sophisticated industry, with a well developed private and public sector. Whilst healthcare is often a hot issue politically, we have a lot to be proud of in Australia.

The early breakthroughs with penicillin, the bionic ear, a vaccine for cervical cancer, to name but a few, are testimony to Australia’s talent and innovation in healthcare.

In bringing the commercialisation division of the world’s largest clinical research organization to Australia 12 years ago, I discovered just how developed Australia is as a centre of excellence for pharmaceuticals, medical devices, diagnostics, software and a broad range of solutions that help to achieve better healthcare and health outcomes.

With a good track record and the talent we have spanning many disciplines, we have punched above our weight in Australia. However with Australia being only 1% of the world market, there is always the need to find the best route to international markets. Our universities and our companies are producing tremendous innovations and often need to access the right global connections and commercial expertise and experience, to achieve international success.

Building companies around specialist healthcare solutions targeting serious unmet medical provides a good example of opportunities for global entrepreneurship and investment in and from Australia. I am a Non Executive Director of Atlantic Healthcare whose innovative approach includes a focus on Orphan drugs which are now being heralded as “niche busters”.

These are drugs which are “below the radar” of major pharmaceutical and biotech companies, who will license them out to entrepreneurial companies, with credible experienced teams such as Atlantic Healthcare’s, for commercialisation globally. Clinical trials for Orphan drugs are run efficiently with smaller patient groups, thereby reducing costs and time significantly. Incentives for Orphan and specialised drug development are provided through government legislation, the US FDA and the EU regulatory, under special protocols. Such drugs are fast tracked to market, used on a “named patient” basis initially and can provide faster revenues and improved returns for companies and their shareholders.

New business models such as this will involve integration of other healthcare solutions including diagnostics, devices, treatment monitoring and patient support, to improve healthcare outcomes.

Australia is ideally positioned to capitalise on global entrepreneurship in healthcare and in other sectors, through our innovation and talent nationally, the strength of our economy and our sophisticated and professional investor base. By making the right connections with the right experience and expertise and with international Trade and Investment groups such as Austrade, UK Trade and Investment and its Global Entrepreneur Programme, Australia India Business Council and others; is a great opportunity to do just that.

Steve Hobbs is also a Non Executive Director of Atlantic Healthcare, Managing Director of Customer Centric Pty Ltd, a member of the Australia India Business Council and co-founder of the UK Professionals in Australia group.

Steve has over 30 years experience in global pharmaceuticals and healthcare. He was Business Development Director for Quintiles; the world’s largest clinical research organisation in the pharmaceutical industry. After playing a key role in growing the business in the UK he brought the commercialisation division to Australia.