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ASX has facilitated the development of The Code of Best Practice for Reporting by Biotechnology, Medical Device and other Life Sciences Companies, in recognition of a gap in awareness and understanding between biotechnology companies and the investment community. The code, the first of its kind, is a tool to help bridge this gap.
The biotechnology industry is becoming an increasingly significant sector in Australia, where there are around 90 companies classified as ‘biotechs’, up from 21 in 1999*. As such, the industry and ASX recognised that common guidelines for reporting and disclosure will assist investors to make informed decisions and properly assess the value and prospects of biotechnology companies.
ASX has emphasised that the framework is not an addition to the Listing Rules, nor is it mandatory and therefore not backed by supervisory sanctions. Instead, it is a voluntary process designed to relieve the difficulties associated with reporting developments in this sector in a way that may be better understood by investors.
ASX drafted the guidelines after consultation with industry chief executive officers, analysts and working committees of the industry body, AusBiotech. It is expected that these will be refined in the coming years as the industry grows and matures.
ASX Chief Operating Officer Colin Scully said: “This is very much a ‘work in progress’ but we are pleased with the input we have received so far. The biotech industry covers a wide range of companies including device, drug and diagnostic enterprises. The rate of new discovery and change in the industry means that this code is not set into the ASX Listing Rules, as it will evolve along with the industry. The code is designed to build investor confidence by presenting a common reporting structure and therefore improve capital flows into the sector.”
Mr Scully also highlighted that this code is the product of the combined input of those in the industry, with ASX playing the role of facilitator, rather than the case of an outside body setting industry standards. ASX believes this role is best served by the industry itself.
AusBiotech in partnership with NZBio is holding their inaugural CEO forum to allow CEO’s of leading Biotechnology companies to come together to share vital information and to determine industry policy, direction and development.
The Code is part of a broad set of ASX initiatives to foster the biotechnology sector of the Australian market. Further Details may be found at:
