Check Up: Australian biotech sector continues to be a magnet for US investors

• Australian biotech has attracted US investments in the last five years
• Among ASX stocks to get funded from the US include Opthea
• We look at the  best and worst performing ASX biotechs over the past month

The Australian biotech sector continues to attract significant investment from US investors.

Data from AusBiotech shows that over the period from 2018 to 2022, a total of US$1.43 billion was injected into the sector, representing 100 deals between US-based investors and Australian-headquartered life sciences companies.

Around US$139m representing 14 deals were reported in 2018, but that figure has ballooned to 24 deals representing US$642m in 2022.

Most of the funds were invested in sub-sector thematics such as therapeutics, drug discovery, and medical devices among others.

Notably, the research also singled out a rise in Australian ‘digital health’ companies receiving significant investment from the US over that five-year period.

These stocks are getting funded from the US

The list of local biotechs being funded by US firms include unlisted names such as Eucalyptus (US$71 million plus an undisclosed seed round), and Harrison.ai (US$62 million of venture capital).

On the ASX, the biggest acquisition over the past year was that of Resapp Health, which was bought by US-based Pfizer in 2022 for about $121 million.

Another ASX company to be acquired by a US investor is aged care company Estia Health (ASX:EHE).

Estia recently signed a binding agreement to sell 100% of its shares to Boston-based Bain Capital for $3.20 each, in cash.

And at present, Washington D.C based private equity firm Carlyle is reportedly pursuing more stake in Opthea (ASX:OPT).

According to a recent report by the AFR, Carlyle has signalled its intention to take up an option to invest another $US50 million in the clinical-stage biotech, bringing its total investment to $US170 million.

Opthea’s lead drug candidate OPT-302 is an advanced-stage drug currently progressing to Phase 3 clinical trials. The drug could potentially hit the market soon as a treatment for  wet age-related macular degeneration (wet AMD).

Best and worst performing ASX biotechs over the past month

Swipe or scroll to reveal the full table. Click headings to sort

Lumos Diagnostics (ASX:LDX)

Market darling Lumos was the best biotech over the past month after a slew of newsflow.

The company earlier reported that a core patent covering the camera technology used in its reader platform has been granted for Europe and Japan.

Lumos also announced an agreement with Henry Schein B.V. for the FebriDx point-of-care test. The agreement further expands the distribution of FebriDx through Henry Schein’s Medical business to include the Netherlands.

And on Wednesday, Lumos reported that its commercial services revenue for FY23 was US$10.2m, up from US$9.4 million in FY22.

Botanix Pharma (ASX:BOT)

Botanix appointed Dr Howie McKibbon as CEO, effective 24 August.

Dr McKibbon was previously chief operating officer for Botanix, and has more than 25 years experience in the pharmaceutical industry. He has personally led the successful launch of more than 15 products, according to the ASX release.

Botanix says the appointment comes at an important time in the development of Botanix, with the acceleration of commercial activities in preparation for the pending launch of Sofpironium Bromide.

The FDA approval of Sofpironium Bromide is targeted for the end of September.

Clarity Pharma (ASX:CU6)

Clarity announced that the first participant of cohort 4 of the theranostic CL04 trial investigating 64Cu/67Cu SARTATE in neuroblastoma has been treated at the highest dose cohort of 375MBq/kg body weight.

Ealier, Cohort 3 was successfully completed in 3 participants with neuroblastoma who received therapy with 67Cu SARTATE at a dose of 275MBq/kg body weight.

Clarity also said that the first participant of cohort 3 in the theranostic SECuRE trial investigating 64Cu/67Cu SAR-bisPSMA in metastatic castrate-resistant prostate cancer (mCRPC) has been treated at the highest dose level of 12GBq.

Earlier, Cohort 2 was completed in three participants who received therapy with 67Cu SAR-bisPSMA at the dose level of 8GBq.

Resonance Pharma (ASX:RHT)

Resonance says it has been contracted by Sun Pharmaceutical Industries, an Indian based publicly listed multinational pharmaceutical company.

Under the agreement, Resonance, through its wholly owned subsidiary, CRO Services, will serve as CRO (Contract Research Organization) and local sponsor for Sun, engaging and making payment to the institutions, trial sites, and the vendors needed to conduct the clinical trial.

Resonance will also provide its imaging analysis services to Sun at various timepoints throughout the clinical trial, along with exploratory laboratory biomarker assessment services.

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