Guiding More Investment in Life Sciences

Pictured: Dr Chris Smith (Brandon Capital Partners) at the ASX launch of the ‘Guide to Life Sciences Investing’ presenting insights on investing in life sciences, from the investor/advisor perspective.

The AusBiotech Sector Snapshot (October 2017) revealed that there are currently over 130 ASX-listed life sciences companies with a market capitalisation of over $50 billion. It's indicative of a burgeoning sector that is one of the key areas of economic growth in Australia.

However, investing in the life sciences sector is met with hesitation by many investors. This can be due to a lack of understanding of complex products in the area, the long return timelines or the need for relatively larger investment amounts.

To help overcome some of the resistance and improve understanding of life science investment opportunities, MTPConnect supported development of the Guide to Life Sciences Investing.

AusBiotech CEO Lorraine Chiroiu says the Guide demystifies what can often be a complicated sector.

“The future growth of the Australian life sciences sector in many ways depends on the availability of capital, so a resource like this Guide, which helps inform and educate potential investors is invaluable,” Ms Chiroiu says.

The Guide to Life Sciences Investing was launched at public events in Sydney and Melbourne in May. These events were followed up with well-attended investing seminars in Melbourne and Perth.

James Posnett, Senior Manager, Listings Business Development at ASX Limited says the guide is the valuable resource for investors interested in the MTP sector.

“ASX-listed life science companies offer a variety of compelling investment opportunities; the Guide to Life Sciences Investing is a useful framework for both new and experienced investors to approach their research into the sector.”

The Guide’s release is timely. According to the AusBiotech Industry Position Survey (August 2018), almost 90 per cent of survey respondents said they expected their business to grow in 2018, with almost 45 per cent intending to actively capital-raise. It’s a finding which points to plenty of upcoming opportunities for investment within the sector, and the Guide helps ensure that these opportunities are met by investors who feel confident and enthusiastic about investment decisions.

And by helping Australian life sciences to access capital, this in turn supports the continued growth and expansion of the Australian life sciences sector through local and international investment.

For more information, visit the AusBiotech to learn more.