Australia’s relationship with the United States is economically and strategically significant for both countries. As we face a future with complex technological, geopolitical, economic, environmental and social challenges, strong US and Australia relations have never been more important. These pressures also create exciting new opportunities for business collaboration.
KPMG has partnered with AmCham in Australia to examine the six industries we believe will shape the future economic and strategic partnership between the US and Australia for the next 50 years, including AI, Quantum Science, Digital Economy, Space, Clean Energy and Biotechnology.
In KPMG’s Prosperous Futures series, we have so far delved into the emerging tech, space and clean energy industries. Our reports have outlined invaluable trade and investment opportunities and revealed key insights into the unique alliance between the US and Australia.
This fifth report, Biotech, delves into the future of biotechnology and investigates opportunities for US–Australia trade and investment in the market. Our research examines how the changing geopolitical, economic and health landscapes will shape biotechnology advancements. We take a detailed look at the US biotech market, its growth trajectory and Australia’s opportunities, and provides advice for Australian biotech businesses looking to expand into the US.
Report highlights
Australia’s biotechnology industry was ranked fifth in the world in terms of research and translation. The Department of Health has committed to supporting world-class research and innovation, the creation of quality biopharmaceutical and medical tech products, access to international markets, continued high quality research and a globally recognised Australian medical products industry with local manufacturing capabilities.
Health biotechnology is the largest generator of revenue in the US biotechnology industry; KPMG modelling predicts it will continue to grow over the coming years due to a global increase in the prevalence of chronic disease and cancer, as well as an uptick of R&D in the biopharmaceutical industry. Australia’s renowned research and clinical trials capabilities, growing biotech industry and increasing investments in manufacturing can help bolster biotech breakthroughs.
In 2022, Australia exported US$812 million worth of biotech products to the United States, becoming the 15th largest exporter. KPMG modelling indicates that by the end of the decade, achieving accelerated growth could result in up to US$10 billion in exports to the United States and nearly 34,000 specialised, high paid jobs associated with this US trade uplift.
For the private sector to take advantage of this increased focus, there are several key factors for success.
- Market validation and product differentiation are critical.
- Deep understanding of the reimbursement landscape can determine commercial success.
- Build a global network and have a deep understanding of US partners’ needs.
- Leverage strengths in R&D and early product development.
- Foster collaboration between research and industry to boost commercialisation.
A Prosperous Future: Biotech
Biotechnology opportunities for Australia and the United States.
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