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The committee, formed jointly by ASX and AusBiotech, will review the current draft of the code with a view to finalising it as a Code of Best Practice.
The Code of Best Practice for Reporting by Biotechnology, Medical Device and other Life Sciences Companies has been developed to enhance communication and understanding between companies and the investment community and to promote investor confidence in the sector. The Code was launched as a working draft in April this year and a number of companies have already adopted it as a standard in their reporting to the market.
ASX Deputy CEO Colin Scully said: “This initiative assist the growth and acceptance of the biotechnology industry. Disclosure of information is fundamental to inspiring confidence in open markets. Ensuring we have a common reporting framework and shared understanding of information contributes to investor confidence, and therefore contributes towards a lower cost of capital for the industry.”
AusBiotech Executive Director Tony Coulepis said: The draft reporting guidelines are an important step in raising the reporting standards in Australia towards world best practice and therefore in developing the Australian biotechnology industry.
The committee consists of senior representatives of listed companies, analysts, and other stakeholders. At the initial meeting the committee confirmed the objectives, issues and processes to be followed.
The committee has called for final submissions to the draft code to be received by 7 February 2005, with a view to finalising a code by the second half of 2005.
