L21 Role of Government in Biotech Flashcards
Why is Medtech/Pharma/Biotech (MTP) important?
see onenote
- gov’t spends 78.8B on health
- MTP has highest dependency on IP
- no other industry it as dependent on public sector as biotech, MTP is the single largest recipient of public money
- most R&D intensive companies compete using science and quality
Therapeutics R&D value chain
see onenote diagram
Biotech ecosystem
see onenote diagram
- gov’t
- pharma
- biotech
- research community
the role of scientific research in the national economy
see onenote diagram and side notes
Fundamentally important = understand the customer, biotech sector doesn’t do it very well
Health products from a buyer’s perspective
see onenote side notes
Two key market access barriers:
- regulatory
- pricing
- products are often non-discretionary
- products sell into highly complex markets with many stake holders
- product is IP claim and label claim
- leads to unconventional business models
Non-discretionary
Not subject to or influenced by someone’s discretion, judgment, or preference. Non-discretionary spending is spending that is required by a budget, contract, or other commitment.
Example of gov’t support for biotech
see onenote slides
- education and training
- supporting public funded research organisations e.g. uni, CSIRO
- research infrastructure support
- Gov’t operates around the concept of market failure
- Providing the things that no one else can afford to pay for e.g. very expensive kits - buying health products and services
- translation funding
- to help a business commercialise - tax incentives
- advisory programs e.g. IP Australia, source of commercial intelligence
- regulatory policy
- sector capability
- enhance collaboration with PFRO
R&D Tax incentives
The Research and development (R&D) tax incentive encourages companies to engage in R&D benefiting Australia, by providing a tax offset for eligible R&D activities. It has two core components: a refundable tax offset for certain eligible entities whose aggregated turnover is less than $20 million.
Future Trends
see onenote diagram
Large part of the sector = enabling
- Contract research, consulting
Top 10 healthcare mega trends
- shift to predictive and preventative care
- consumerisation of healthcare
- big data analytics
- growth in the use of personalised therapies
- decentralisation of healthcare delivery
- move to value-based care
- digitisation of healthcare
- rise of the Asian manufacturer
- automation of healthcare delivery
- wearables everywhere
Top 5 trends for biotech
- big data analytics
- growth in use of personalised medicine
- digitisation of healthcare
- automation of healthcare delivery
- move to value-based care
Value based care
see onenote
Users want clinical benefit
- Pay for value
- Measure the benefit, pay for the benefit, changes the way the industry functions
- Price of medicine scaled according to the benefit - changes the game, a new way of looking at it
○ Incentivises innovation
§ To create value for patients
○ Produces a needs-based product
○ New product has to be genuinely valuable, clinical benefit different to what is already in the market
Personalised therapies
see onenote
Individualising medicine for people
- Customised therapy
- Cell-based therapy - Peter Mac
R&D Value Chain - job roles
see onenote diagram
Summary
- importance of healthcare in the economy will grow
- gov’t is heavily invested in biomedical industry
- outsourcing of specialised services is growing
- new tech and megatrends are creating new industry segments - all of which will need a health science literate workforce
