Pharmaceutical Funding Boost to Fight Disease
The Australian Government has announced an additional A$28 million boost for six pharmaceutical and biotech companies to assist with research and development (R&D) for new drugs into treating debilitating diseases.
The funding comes under the Pharmaceutical Partnerships Program (P3), a scheme designed to stimulate high-value R&D and promote the development of high value partnerships with international firms.
Successful global pharmaceutical companies, GlaxoSmithKline, Janssen-Cilag, and Australian companies Vital Health Sciences Pty Ltd, Progen Pharmaceuticals Ltd, Peptech Limited, and Tissue Therapies Ltd will each get 50 cents — up from 30 cents in the previous P3 rounds — for each additional dollar they spend over a base level portfolio of eligible R&D activities in Australia, up to a A$10 million cap.
“P3 is stimulating foreign investment in high-quality pharmaceutical R&D in Australia,” said Fred Welz Senior Investment Commissioner for North America.
“Australia’s strong medical research base and intellectual property regime makes it a world-class location for R&D investment. In fact, in a pharmaceutical benchmarking study, Australia was ranked first when compared against six of our competitor countries, including the US and the UK, as a location to conduct clinical trials.”
Welz said that this is the ideal time for global pharmaceutical firms to consider investing in Australian R&D.
The pharmaceutical and biotechnology industry is also positioned to benefit from recent changes to the 175 per cent R&D tax concession last week. The amendments allow firms to claim for R&D projects undertaken in Australia, regardless of where their intellectual property is held.
“The changes to R&D tax concessions represent a further incentive for international firms to invest in Australian R&D and expand their operations offshore,” Welz said.
“Australia is an excellent investment option for North American firms who have an interest in R&D and want to reap the rewards offered by the Australian Government’s assistance programs,” Welz said.
Details of the successful P3 grants are:
Australian subsidiary of Johnson & Johnson Research, Janssen-Cilag Pty Ltd, will receive A$4.2 million for clinical trials of an innovative anti-HIV cell-delivered gene transfer product and Phase I, II and III research in neurosciences, oncology, haematology, infectious diseases, cardiovascular disorders and immunology.
GlaxoSmithKline will receive A$7.6 million in grants for research in areas including Alzheimer’s, neuropathic pain, cardiovascular disease, diabetes, hepatitis B, neurology, immunology, migraine, asthma and respiratory medicine, and oncology and rheumatology.
Peptech Limited, NSW – A$6.6 million for developing and providing antibody and peptide-based human therapeutic products for the treatment of cancer and inflammatory diseases.
Progen Pharmaceuticals Ltd, Queensland – A$4.6 million for development of novel compounds as therapeutics (including antiangiogenic compound PI-88) for the treatment of cancer and other serious diseases.
Tissue Therapies Ltd, Queensland – A$1.9 million for its portfolio of projects involving bio-pharmaceutical manufacturing for clinical trials; development of new wound-healing products, and new therapies for cancer metastasis and atherosclerosis.
Vital Health Sciences Pty Ltd (a wholly owned subsidiary of Phosphagenics Limited), Victoria – A$3.2 million for the development of proprietary drug delivery technology for the transdermal delivery of drugs as well as extension of the technology to oral drug delivery; and proprietary lead compounds for treating atherosclerosis/metabolic syndrome and cancer.
About Invest Australia — www.investaustralia.gov.au
Invest Australia, is the Australian Government’s inward investment agency that helps international companies build their business in Australia and offers investors a free, comprehensive and confidential service.
Between July 2002 and March 2007, Invest Australia played a verified role in attracting or facilitating 357 projects worth approximately A$55 billion, with the potential to create more than 27,000 jobs and generate A$12.5 billion in export earnings.