Abstract
Increasing Research Drives Genomics and Proteomics Market in Australia
Extensive research in genomics and proteomics is promising cures for previously untreatable
diseases. With the Government assisting by providing additional tax concessions, the spending on
research and development (R&D) is likely to increase by 66.0 percent in 2005. As a result, more
than 300 biotechnology companies focusing on genomics and proteomics applications have set up
operations in Australia to take advantage of this favorable environment. Drug discovery companies
are also likely to have ample opportunities to slightly modify the lead compound in order to screen
and exclude patients of a certain genotype who are more prone to developing certain side effects
from clinical trials.
This Frost & Sullivan research service provides an overview of and an outlook for the
Australian genomics and proteomics market. It segments the market into structural and functional
genomics and structural and functional proteomics. It provides detailed revenue forecasts and market
share analyses and is essential for both large and small market participants seeking to position
themselves to earn maximum return on investments.
Research Companies Must Team-up with Venture Capitalists for Funds
Compared to Western countries, most of the Australian biotech companies are start-up undertakings
that are in need of capital to support their research. However, venture capitalists (VCs) are
hesitant to provide funds since these companies have few products in the final stages of drug
discovery and have to wait for around ten years for their products to complete clinical trials
before releasing them into the market.
"The long gestation period and the low market awareness on the potential of biotech products
have led to insufficient funding of the biotech ventures in Australia as investors perceive them as
being too risky," points out the analyst of the research service. "The Australian
government and the top research companies should help VCs understand the commercial viability of
their projects and the time required to market them." To do this, they need to work closer with
the VCs and convince them of the effectiveness of their approaches in procuring positive results in
the clinical trials.
Enterprises Must Supply Researchers with Superior Products at Lesser Costs
"Researchers need to strike the right balance between choosing high-end products for their
research and maintaining lower costs," emphasizes the analyst. "New products such as those
in structural proteomics can be expensive, and at times, complex and enterprises should convince
researchers about their long-term benefits to drive their sales."
To encourage greater involvement in research from universities, biotech companies must educate
the faculty on intellectual property (IP) issues, patent filing, and tracking of license agreements
with third parties, and monitoring competitors technologies. These universities need to allot more
resources for developing enhanced commercialization processes and build managerial expertise in
commercialization, deal structuring, and business development.
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