With top-notch scientists, robust yet adaptable regulations, and first-rate research facilities, Australia has emerged as a global leader in biotechnology and pharmaceutical innovation.
Strong interest is shown internationally by the biotechnology sector's dynamism. In terms of biotechnology, Australia is ranked among the top 5 countries by Scientific American Worldview, outperforming nations like Germany and the United Kingdom.
Australia is ranked highly for the competitiveness of its biotechnology and as a place to conduct clinical trials, according to international bench-marking conducted by the EIU. The study takes into account a variety of industry indicators, including clinical trials, the IP system, and the regulatory, business, and investment environments.
Because of its competitiveness, Australia is now home to a flourishing biotechnology industry comprising over 470 companies. Of these, agricultural biotechnology and diagnostics are included in some, while therapeutics makes up the majority.
The Australian biotech market is expected to see some positive growth to $25.2 billion by 2025, according to a GlobalData analysis. Australia is a world leader in medical technology, digital health, agritech and foodtech, therapeutics, regenerative medicine, and other critical areas of the life sciences. These strengths are promoted by Australian government policy and funding programs. ( Source: Scientific American Worldview, AusBiotech.)
Let’s take a look at some of the top 5 ASX ‘biotechnology stocks’ for 2024 in different sizes based on their market capitalization. These are as follows:
Note: The market cap and the share price of the selected ASX companies mentioned are based on 25 January 2024.
Imugene Limited (ASX: IMU)
Market cap: $752.75 million
CMP: $0.105
Imugene's research is progressing significantly, especially with the help of NeoImmuneTech, Inc. Future cancer trials in the US and Australia will use a vaccine that targets PD-1 in early-stage MSI-high colorectal cancer cases. Notably, the European Patent Office designated Imugene's PD1-Vaxx cancer vaccine as intended to be granted and granted it Fast Track status for patent approval. With their combined accomplishments, these benchmarks demonstrate Imugene's solid standing and promising developments in the field of immuno-oncology.
Mesoblast Limited (ASX: MSB)
Market cap: $269.07 million
CMP: $0.265
Mesoblast has made a name for itself in inflammatory processes and cell therapies. The company has made efforts in its product development to increase the commercial use of its main product, "Ryoncil," with the goal of entering the adult and adolescent market, which is five times larger than that of pediatrics. With its corporate and commercial strategy, the company keeps showcasing the importance of technology and pipeline across the portfolio. The business is moving quickly because it was granted a Rare Paediatric Disease (RPD) Designation for ‘REVASCOR’.
Dimerix Limited (ASX: DXB)
Market cap: $73.66 million
CMP: $0.17
Dimerix retains territorial rights and seeks partnerships beyond the Advanz scope. Enrolling 286 FSGS patients globally, including mainland China, positive results from the ACTION3 study could facilitate DMX-200's potential approval (as QYTOVRA® in specific regions) in China. Additionally, an interim analysis involving 144 patients aims to expedite DMX-200's availability through Accelerated/Conditional Marketing Approval based on encouraging initial study outcomes.
Race Oncology Limited (ASX: RAC)
Market cap: $122.24 million
CMP: $0.745
The company has been designed to maximize the potential for "bisantrene." Bisantrene plus anthracycline improves anticancer activity, which can show potent cell-killing activity against a diverse range of human cancers. Bisantrene is geared up for the vital role of the cancer cell-killing activity of doxorubicin. The composition can also protect the heart. The new bisantrene formulation RC220 has shown efficacy across the areas of cardio protection, m6A RNA, and AML. The reformulation of the bisantrene RC220 will drive high-value pharma transactions in support of delivering significant returns to shareholders. RC220 is expected to be available for clinical use in the second half of 2024. Bisantrene has great market potential in the USA as well as the rest of the world.
Paradigm Biopharmaceuticals Limited (ASX: PAR)
Market cap: $120.95 million
CMP: $0.345
Given that it has the potential to offer much-needed utility and treatment in a market where it is both highly desired and necessary, the recently announced successful clinical trial outcomes from PARA_OA_008 and iPPS remain crucial. Additionally, there is a great deal of optimism regarding the quality, effectiveness, and standard of the medications because, at 12 months following a single course of treatment, no OA medication has ever demonstrated significant and long-lasting improvements in pain and function to the extent that it has. The company has over 100 granted or pending patent applications, which further confirms the vast base of intellectual property that was disclosed in the early part of this year.
Reference: *All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters
Frequently Asked Questions (F.A.Q)
What are the top 5 ASX-biotech stocks?
Imugene Limited (ASX: IMU)
Mesoblast Limited (ASX: MSB)
Aroa Biosurgery Limited (ASX: ARX)
Race Oncology Limited (ASX: RAC)
Paradigm Biopharmaceuticals Limited (ASX: PAR)
What is the outlook for the biotechnology industry?
Australia is well-positioned to develop and use biotechnology. Recent notable achievements in Australia's biotechnology sector have bolstered confidence among investors and the industry. Over the next five years, it is anticipated that the biotechnology industry will grow steadily and that global investments in research and development (R&D) will increase.
What forces propel the biotechnology industry?
• One of the primary drivers of growth in the biotechnology market is the existence of favourable government initiatives in developed nations.
• Innovation in technology.
• The growing market for goods derived from agriculture.
• The market's increasing desire for synthetic biology.
• An increase in R&D spending by both public and private organizations.
• Increase in the prevalence of chronic illnesses globally.
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