More biotech companies moving into ASX 200

More biotech companies are moving into the Australian Securities Exchange (ASX) 200, with two new companies recently joining the list: PolyNovo (PNV) and Avita Medical (AVH). This movement demonstrates the healthy biotech pipeline in Australia, with more small to medium enterprises (SMEs) progressing through as the life sciences sector grows and matures.

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AusBiotech, Australia’s peak biotechnology industry association, released updated figures of the industry on October 30, with the new sector ‘snapshot’ revealing momentous growth across the Australian life sciences sector over the past two years. ASX-listed companies have increased from 140 companies in 2017, to over 160 in 2019. The value of these companies has grown to over $170 billion, demonstrating the opportunities available for investment.

Healthcare represents almost 10 per cent of total index market cap of the ASX 200, with CSL holding just over six per cent. Other AusBiotech members included on the list are: Sonic Clinical Trials (a subsiderary of Sonic Healthcare - SHL), Cochlear Limited (COH); and Nanosonics Limited (NAN).

The research report confirmed that there is a 12 per cent growth in the number of organisations, growing from approximately 1,654 to 1,852, and a five per cent growth in employees, increasing from 232,213 people to 243,406 between 2017 and 2019.

The majority of the workforce is found in industry (36 per cent, 87,397 people). When compared to the employee numbers reported in 2017, there has been a 5 per cent overall increase in the number of people employed by the sector (from 232,213 in 2017). Similarly, since 2017 there has been a 6 per cent increase in the number of people employed by industry and a 2 per cent increase in the research workforce.