A: It is very hard to invest broadly domestically because the companies tend to be small and there is a high failure rate. Further, because the products typically have a global audience and very long lead times from idea to commercialisation, very deep pockets are required. The model for most Australian biotech firms is to develop the product and then sell that (and the IP) to a global healthcare company to commercialise and distribute.

 

On the ASX, the nearest I can find is CURE from ETF Securities (this tracks the US S&P Biotechnology Index). HLTH from Van Eck and DRUG from Betashares are focused on global healthcare leaders.

 

One company who you might want to talk to is the IQ Group Global, who “find, fund and develop bio-science discoveries to create life-changing medical innovations”.