Medical Devices

Increasing numbers of global success stories, significant collaborations with Japan, and an untapped wealth of opportunity – Australia covers the complete value chain of medical devices, and holds an exciting future.

Against the backdrop of Australia’s sophisticated health infrastructure, there are an estimated 600 medical device firms and more than 10,000 people employed in the medical device industry in Australia. New South Wales is leading the way for research and development, with 83% of R&D expenditure occurring there.

The expertise within the medical devices sector is complete, offering the following capabilities in the commercialisation cycle – biomaterials, engineering expertise, design, phototyping, manufacturing, testing/clinical trials and marketing.

New talent emerging

Particular success is emerging where existing medical devices are being combined with other medical areas, such as materials, diagnostics and pharmaceuticals.

An example is Clinical Cell Culture (C3), a company commercialising skin tissue engineering products used to treat burn injuries and other skin disorders. Its ReCell product allows a skin sample from a biopsy to be processed into an immediate cell population for delivery onto the wound (>> click here for more).

Sirtex Medical is a market leader in liver cancer therapy, using implantable drug delivery systems through novel small-particle technology. Sirtex is working towards marketing its SIRtex product in Japan, where there is widespread incidence of metastatic liver cancer.

Bioclone Australia is an Australian-based subsidiary of Hitachi Chemical Co Ltd Japan. It specialises in high quality immunodiagnostic kits, re-agents and antibodies for the medical and laboratory markets. Bioclone now produces more than 25 kits, which are exported to Europe, Asia, the Middle East and the Americas.

A shining light in Australia is Proteome Systems, a company that develops, manufactures and commercialises innovative technology that facilitates proteomic research – the comprehensive analysis of proteins and their interactions. Proteome Systems also utilises the technology to discover proteins that have the potential to be used as diagnostics or therapeutics, with current research in the areas of respiratory disease, neurobiology and cancer.

Proteome Systems has had a strong history with Japan through its establishment of a joint venture company Proteome Systems Japan, and the co-development of much of its technology with Shimadzu, a major Japanese industry provider. Together with Shimadzu, Proteome Systems co-developed technologies such as Xcise (a protein processing robot) and ChIP (chemical inkjet printing for proteomic research).

Together with flagship product ProteomIQ, such technologies are extensively used throughout Japan.

Portland Orthopaedics is another company setting its sights on the Japanese market, with unique joint replacement systems and its lead product, the Margron Total Hip Replacement System.

The company began a collaborative project with Kyoto University after a science delegation visited Australia several years ago. The project has been so successful that the partnership is now embarking on a new project to provide a revision of a knee replacement.

Portland has also developed a hip replacement specifically for the Japanese population and, as of October 2004, was in discussions with distributors.

A track record of success

Australia has a strong history of development and commercial success in medical devices. Take ResMed, active in the Japanese market for about 10 years via its distributor, Teijin Pharmaceuticals Ltd. Named in Fortune magazine’s 2004 list of America’s fastest growing companies, Australian company ResMed is a world-recognised leader in respiratory medical device manufacture. It specialises in products for diagnosis and treatment of sleep-disordered breathing and, with Teijin, has a substantial share of the sleep apnoea market.

There is also Cochlear, one of the best-known Australian biomedical companies. Its Nucleus 3 cochlear implant system is sold in more than 70 countries.

Real opportunities

Investment in Australian companies is available for a range of technologies and opportunities from early stage to pre-initial public offering (IPO). The IPO window is firmly open in Australia and there are specialised venture
capital firms to co-invest in this field.

A cost-effective location for manufacture, research and development, Australia offers a highly skilled workforce and specialist medical device professionals, as well as solid assistance through government agencies and state governments for companies doing business with and in Australia.

Australia has multiple opportunities for collaboration in research, product development and marketing in the medical device and biomaterials industry.

Article by AusBiotech, the Australian Biotechnology Industry Organisation, representing over 2400 members across the value and supply chain of the biotechnology and medical device industries. AusBiotech has a specialist Medical Device Network to assist companies globalise their technologies.

>> www.ausbiotech.org