Western Australian biotechnology companies are capitalising on growth in the sector in North Asia, particularly Japan and China, through collaborations and distribution agreements.
Western Australian biotechnology companies are capitalising on growth in the sector in North Asia, particularly Japan and China, through collaborations and distribution agreements.
This month, immunology and biotechnology company Agri-Biotech Pty Ltd entered into a partnership with Chinese-based natural medicine supplier, Golden Bells Developments Ltd, to supply antibody-rich milk to the company’s extensive distribution networks in Japan and China.
Claremont-based Agri-Biotech, which has developed technology to infuse milk with antibodies through the immunisation of cattle, believes the agreement will aid its strategy to enter the lucrative wellness foods market in Japan.
The company is currently in discussions with Capel-based dairy, Challenge Dairy Co-operative, to immunise its cattle and create antibody-rich milk, which would then be sold to Golden Bells and shipped in concentrate form to Japan.
Agri-Biotech executive director Guan Tay said the partnership would provide opportunities for dairy farmers in the South West and would enable Golden Bells to diversify its operations.
“They see it as an opportunity to get into the healthy milk market,” he told WA Business News.
Dr Tay said Golden Bells was already in discussions with potential buyers.
“They have identified two Japanese trading houses who want to buy the product out of WA,” he said.
Agri-Biotech is preparing a pilot sample of its product for the Japanese companies and, once regulatory specifications are met, will export its product.
Golden Bells has taken equity in Agri-Biotech, making it the second largest shareholder in the company, while Agri-Biotech has bought a small tranche of options in its Chinese partner.
Meanwhile, West Perth-based collagen products developer CollTech Australia Ltd is in the process of creating a distribution network in Asia, having signed off on several contracts in recent months.
The ASX-listed company announced last week that it had secured an agreement with Singapore-based chemical distributor, Nardev Chemie Pte Ltd, to supply its cosmetic grade collagen in Singapore, Malaysia, Vietnam, and Indonesia.
The deal adds to CollTech’s existing agreements with companies in Thailand (signed in May) and Taiwan.
Negotiations are also being undertaken with distributors in South Korea, China, the US, and Europe, following the launch of CollTech’s collagen product in those markets.
CollTech chief scientific officer Debbie Cooper said the company was currently focusing on strengthening its Asian markets, although she said it may explore opportunities for joint venture collaborations in research and development in the future.
The increased activity of WA-based biotechnology companies in North East Asia is part of a national trend, according to Austrade North East Asia regional director Laurie Smith.
Mr Smith said the success of WA’s Nobel Laureates Barry Marshall and Robin Warren had provided a particularly useful boost in profile for the sector.
“Over the last couple of years, there have been a series of successes and it is building momentum,” he said.
“The US is still the number one biotechnology market, but Japan is emerging strongly.”
Mr Smith said companies with animal-related products enjoyed an advantage.
“People think of Australia as having good agriculture and food, so there’s a connection there,” he said.
