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Financial crisis, policy change threatens biotechnology companies


EXTRACTS

- ANDREW ROBERTSON: As raising capital gets tougher, three biotech companies have failed in the past six months, including Ventracor, maker of the much heralded heart pumps designed to help the diseased hearts of patients who would otherwise need a transplant.

Compounding the industry's problems, in its first Budget the Rudd Government axed a program known as Commercial Ready, which would have provided access to more than $1 billion for biotech companies.

- GORDON BLACK: It's very difficult for investors to, really - and large institutional investors - to really devote the resources to research and understand how these companies work, and where in fact they fit into the global competitive arena with their products and their technologies.

ANDREW ROBERTSON: Which is why, according to Gordon Black, big institutions don't invest in small Australian biotechs, no matter how promising their work may be.