Name: Unveiling the Australian Biotech investor landscape
Uploaded: 2023-08-16T01:50:09.179Z
Duration: 357.97

Shapiro Edited.mp4

Shapiro Edited.vtt

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I think the earlier stage

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investment pool is growing

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quite significantly

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with government funding.

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You have groups like One

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Ventures, Brandon Capital,

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that are getting a lot of

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funding that can help some

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of that earlier research get

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through its initial stages

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before they come to market.

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Hi, I am Elyse Shapiro.

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I'm a healthcare analyst

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at Canaccord Genuity.

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We're a global investment

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bank with a very strong

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presence in the life sciences.

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I think it's really important

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to set the stage for

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what's going on globally.

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And there's read

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through to Australia.

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But when you think about

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the global landscape, you

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had a bull market from

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2019 through about 2021,

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with about $240 billion

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raised during that period.

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Now, in the first quarter

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of 22, that started to shift

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quite dramatically, and you

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had a few things happen.

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First, you had some panic

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selling from investors.

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So they were kind of trying

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to catch falling knives and

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just getting rid of positions.

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And second, you had

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consolidation of those

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investors portfolio

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given the uncertainties

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in the macro backdrop.

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So what you started to

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see was just investors

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focusing on their existing,

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Portfolios not really looking

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for new things and really

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focusing on liquidity.

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So with that, there is a

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massive bar increase in terms

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of quality of companies that

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investors are looking at.

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There is a competition

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for liquidity among the

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companies, and there was a

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reduction in funding for new

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companies wanting to list.

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So you saw IPO funding

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drop significantly while

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secondary fundings kind

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of stayed quite similar

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with investors supporting

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their existing portfolios.

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You know, I think it's

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made things a little

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bit more difficult for

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a lot of unlisted and

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even listed companies.

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Again, you have them battling

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for liquidity in a limited

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market with finite resources.

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And I think the focus has

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really shifted to quality,

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and to a, to a certain extent,

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even later stage assets as

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we've entered a bit more

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of a buyer's market where

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investors have, a lot more

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selection opportunities.

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Another thing that we have

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seen though, which has been

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quite helpful is, a slight

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increase in M & A, but more

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so, an increase in partnership

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activities from big pharma,

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which we can go into later.

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Again, I, I don't think

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this is just limited to the

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Australian market, but you

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know, when, when we look at

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companies, the first thing we

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tend to look at is the size of

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the addressable market, that

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the company can really target.

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And the second issue is that

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you wanna really make sure

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that the company is actually

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solving a real problem, not

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just providing a me too asset.

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When you start to, to delve

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into it, and I probably don't

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wanna oversimplify it, but

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first you look to the clinical

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data, you know, does an asset

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work, is it selected well?

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Does it hit the

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targets, and is it safe?

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Next, you wanna look through

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all the available data you

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have, be it preclinical, all

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the way to phase one, phase

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two, phase three, and make

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sure that you're seeing things

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that you like with, with

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solid metrics across those.

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Next, you wanna assess the

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regulatory environment.

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Is the company doing what the

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FDA wants them to do or what

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the EMA wants them to do?

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Do they have real,

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proper endpoints?

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Are the size of the

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trials positive?

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And then you go on to

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more commercialization and

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reimbursement pathways,

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which are critical.

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So you wanna make sure that

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a company can be profitable

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with an asset that they

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have, that insurers or

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governments are gonna be

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willing to pay for those

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and that the company has,

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considered and is working to

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set up the commercialization

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teams or partners that

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are required to drive that

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profitability going forward.

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Other things you wanna

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think about are competitive

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landscape, things like

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manufacturing, and

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other sorts of risks.

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That can cause an investment

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opportunity to fall over.

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There's some really, really

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good early stage research

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being done in Australia and

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there are some solid benefits

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for those companies to do

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that preclinical, and early

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stage clinical research here,

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including the r and d tax

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incentive and some of those

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strong government funding.

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So I think those are tools

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that companies should

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really consider trying

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to leverage as they're

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in those earlier stage.

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Next, you know, whether

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they wanna get investment

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from Australian investors

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or global investors.

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It's really just about

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having a quality asset

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and being best in class.

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You don't have to be first

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in class, but investors are

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taking a portfolio approach.

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So they understand the

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risks that are involved

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in investing, but they're

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gonna pick the best clinical

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assets with the best science

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addressing larger markets when

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they make their selections.

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And all of those factors

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have to be considered.

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I think the earlier stage

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investment pool is growing

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quite significantly

{{00:05:05}}
with government funding.

{{00:05:06}}
You have groups like One

{{00:05:07}}
Ventures, Brandon Capital.

{{00:05:09}}
That are getting a lot of

{{00:05:10}}
funding that can help some

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of that earlier research get

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through its initial stages

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before they come to market.

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Our listed markets where we

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tend to focus tend to prefer

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a bit of a later stage asset.

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So you already want

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some inhuman proof of

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concept before leveraging

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or deploying funds.

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And I think that shift to

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an improving earlier stage

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investment pool with more

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funding is something that

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can really help as more

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companies start to make their

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way through, you know, you're

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seeing companies listing at

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a later stage with more proof

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so that investors really have

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an understanding of, of how

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an asset is working, what the

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risk reward opportunity looks

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like, and then its chance

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of successes going forward.

Expert Insight

In this insightful video, Elyse Shapiro discusses the evolving trends in the global healthcare investment market and their impact on both early-stage and later-stage companies. 

Whether you're an investor, a healthcare entrepreneur, or simply curious about the intricacies of healthcare investment, Elyse's expert insights provide a comprehensive understanding of the industry's recent developments and the strategies that companies are adopting to thrive in this changing environment.

Bio Connections

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Elyse Shapiro

Healthcare Analyst

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