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Why invest in biotech? With the Australian life sciences ecosystem worth more than $8 billion in annual revenue and projected to grow at 3 per cent annually from 2021-2026, now is the time to take a deeper look at biotech. Join us at AusBioInvest 2024 on 29 October to hear more on: 🧬 Thriving investment opportunities: The global biotechnology market is projected to grow at a compound annual growth rate (CAGR) of 13.96% from 2024 to 2030 to a US$3.88 trillion market, driven by strong clinical pipelines and innovative technologies, as well as a rising demand from population needs. 📈 Improving investor sentiment: The industry is enjoying more investor interest and innovation continues to thrive, while companies have worked hard to restructure during the bear market, emerging in stronger shape than before. The sector globally is coming out of headwinds to a more favourable funding environment, showing signs of continued evolution with a backlog of private biotech companies awaiting the right timing to go public. 💵 Attractive valuations and returns: The SME biotech sector trades on an enterprise value/cash ratio (EV/cash) of approximately 2x, compared to most of the last two decades when the sector has traded on an EV/cash ratio of 3.0-3.5x. Historically, the ASX healthcare sector has also delivered strong performance for investors. The S&P/ASX 200 Health Care index outperformed the benchmark S&P/ASX 200 index in seven of the past 10 years, delivering a CAGR of 11.9% compared to 8.1%. 🏛️ Solid government support: The Federal Government actively supports the biotech sector through programmes like the $22 billion Medical Research Future Fund (#MRFF), R&D Tax Incentive #RDTI, Industry Growth Program, and $15 billion National Reconstruction Fund (#NRF), while state governments also play a crucial role in supporting their state’s life science sector. 🤝 Increasing licensing and M&A activity: With several products soon to come off patent, increased competition from generic manufacturers, and gaps in product pipelines, there’s been an uptick in licensing and M&A activity in the biotech sector, as large pharmaceutical companies look to secure new products externally. 🌱 Socially-responsible investment: Investing in biotech companies can help in achieving Sustainable Development Goals (#SDGs), by financing the innovators and advancers of science and technology to deliver potentially life-changing and life-saving biomedical solutions that have global significance and benefit for humankind. #INVESTORS: register here for a complimentary pass to join us at AusBioInvest 2024 in Melbourne on 29 October, and explore the reasons why biotech is a compelling sector and learn more about what Australia has to offer: https://lnkd.in/g7bJ5ZTc #AusBioInv

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Ashlee Rice

Director of Strategic Partnerships @ Calceus Health

1mo

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