Novotech in expansion mode as CRO sector continues to grow at 15%
October 21, 2007 by admin
Filed under Company News, Company News 2007
BioPacificVentures and Co-Investor Capital Partners invest in Novotech and back expansion plans
Sydney, Australia, Orange County, CA – October 21, 2007 — Novotech, the largest Australian owned contract research organization (CRO) with offices on the US east and west coasts, is now in rapid expansion mode as the CRO sector fundamentals continue to strengthen with growth of more than 15% per year.
Following the company’s successful expansion to the US, Novotech has attracted two leading biotech venture firms BioPacificVentures and Co-Investor Capital Partners as investors in the company and as backers of its overseas expansion plans.
Novotech, the recipient of the Frost & Sullivan Asian CRO of the Year 2006 – Australia Award and a winner of the Deloitte Fast 500 Asia Pacific 2006 program, is also looking to Asia as part of its corporate development with plans to have an office established in India by the end of 2007, and others in the region to follow shortly afterwards.
Novotech CEO, Alek Safarian said many of their US clients were requiring reach into Asia, and so offering a seamless operation serves their growing client base from the Australian and American regions. Novotech is highly regarded in the US and the EU for managing the Australasia/Asia Pacific component of global trials, and a stronger presence in Asia would further guarantee the Novotech stamp of excellence in high standard, speed, efficiency, and reasonable cost trials.
Aki von Roy from BioPacificVentures said the investment in Novotech was a strategic investment in the CRO space, which is thriving. Phillip Pryke of Co-Investor Capital Partners commented that Novotech, is now in an ideal position to further strengthen its presence internationally, in particular in Asia.
According to Frost & Sullivan Program Manager Shruti Dwivedi, Novotech demonstrated “exemplary growth and performance” and is well placed to benefit from the 15% per annum increase in trials conducted in Australia, much of which is coming from large pharmaceutical firms.
Novotech came out on top against its competitors after being evaluated on key criteria including “research capabilities, breadth and depth of services, geographical coverage, and alliances/partnerships that would enhance capabilities and the growth strategies adopted in pursuit of corporate objectives”, said Dwivedi.
“Novotech offers a broad spectrum of services in Australia and New Zealand, catered by a strong research team, experienced in diverse therapeutic fields. It has formed a subsidiary in the UK as well as external partnerships/alliances in North America and other regions to widen its geographical reach.”
Novotech also won praise for its therapeutic experience with its special focus on Oncology, Ophthalmology and Cardiology trials. It conducts approximately 60 clinical trials every year, where nearly 80% are in Phase II & III, with remaining in Phase 1.
Editors please note: Alek Safarian is a guest speaker at AusBiotech 2007 Conference Brisbane.
Monday 22nd October, 2pm
Drugs from the Sea.
About Novotech
Headquartered in Sydney, Novotech is focused on the Australian and New Zealand markets but has worldwide reach through the company’s subsidiary in the United Kingdom and its US operations.
As the largest independent CRO in Australia, Novotech offers a level of flexibility and local knowledge that is unmatched among other contract research organizations in the region. Novotech’s US operations make it uniquely positioned to offer trials across the two countries, providing the benefits of Australia’s highly regarded cost-effective clinical trial capabilities, and at the same time take advantage of access to the much larger US market for rapid patient enrolment – a service that has to date only been available via large global CROs at higher overhead costs.
About BioPacificVentures
BioPacificVentures is one of the world’s largest food, nutrition and agriculturally focused venture capitalists, specializing in the convergence of food and health with a focus on prevention, nutrition, food technology and agbiotech. BioPacificVentures pursues attractive life science investment opportunities with an Australasian focus and takes lead or co-investment positions in rounds ranging from NZ$2 to NZ$10 million.
BioPacificVentures is supported by strategic and financial investors with global reach and industry specific expertise. The largest investor is the world’s biggest food company, Nestlé; the largest local investor is the leading agribusiness firm PGG Wrightson.
About Co-Investor Capital Partners
Co-Investor Capital Partners is an active investor in smaller listed companies in Australia and New Zealand. Although their focus is on small listed companies, at times where they see the potential to create value they invest in private companies which are considering a stock market listing or capital raising or to provide smaller listed companies with the capital they need to grow. Co-Investor Capital Partners provides a suite of five products and services to the companies they invest in: analytics, valuations, research, investor relations and corporate finance. Co-Investor Capital Partners invests in companies that are typically profitable or cash flow positive and invests up to A$20m per company to support growth with an expectation that they will be shareholders in each investee company for around five years.
The Australian Clinical Trials Advantage
Increasingly, US companies are turning to Australia to expedite the pace, and reduce the cost, of clinical trials, while maintaining the high standard of research that US authorities demand. Australia has been ranked the number one location to conduct pharmaceutical clinical trials in an international benchmarking study undertaken by the Economist Intelligence Unit (EIU). The EIU study ranked Australia against six countries – US, UK, Germany, Japan, Singapore and India. Other studies have found that clinical research costs may be as much as 30 percent lower in Australia than in the United States and Europe. In addition, Australian regulatory procedures often enable a trial to begin in as little as 2-3 months from the initiation of the approval process. This compares favorably to usual timelines in major Western countries.
