Research and Management Strategy
Aus Bio’s current research and management philosophy is to focus on:
- identifying chronic disease states where
- large markets exist
- new and improved treatments are required
- conducting a cost effective and focused research and development programme
- linking disciplines of both natural product and medicinal chemistry to reduce both research and product development time
- establishing innovative and diverse R & D pipeline to reduce scientific and commercial risk
- flexible and proactive approach to research and commercial alliances
- conservative R & D expenditure and prudent fiscal management
Aus Bio has continued to progress the Company’s R & D portfolio through each project’s various stages of pre-clinical and clinical research. A number of issues confront many, if not all, mid - small cap Australian biotechnology companies.
Few would argue that the advancement of science, particularly in the area of healthcare has benefited us all.
The lead times to bring a “scientist’s idea” to market through successful biotechnological R & D are long and very costly. Australia does have internationally recognized universities and scientifically acclaimed research centres. In addition Australian scientists are eagerly employed world wide and produce patentable ideas which require, in many instances, further development for eventual commercialisation. However, investment capital in this country for biotechnology endeavours is scarce, irrespective of whether these biotechnology initiatives are in the area of agriculture, pharmaceuticals or industry.
Whilst some venture capital funds have “patient capital” others, including seed capital investors, are often selective, opportunistic and impatient. Government initiatives, both Commonwealth and State, have helped to provide a number of funding opportunities through various grants and R & D commercialisation programmes. However, major taxation initiatives to encourage both corporate and private investment in the biotech sector is lacking. In addition, for small companies, the regulatory framework in which they work is often restrictive and time consuming. Much needs to be done by all parties to ensure that human scientific capital that exists here in Australia is given the opportunity to enable all of us to benefit from successful innovative endeavour.
The Board is aware that some shareholders have requested a defined “exit strategy” including the possible listing of your Company on the Australian Stock Exchange (ASX). Shareholders will be aware that over the past 12 months or so, ASX listed biotechnology stocks have in general, significantly under performed the All Ordinaries Index. Whilst times and market sentiments undoubtedly will change, your Board has taken a view that at present it would not be in the interests of all sharesholders to seek an ASX listing. Management, under Board direction, is assiduously pursuing partnerships and joint venture opportunities with each of the company’s projects and scientific and commercial interest to date has been encouraging.
Corporate Governance
Aus Bio Ltd and your Board are committed to demonstrating and achieving the highest standards of corporate governance.
The Directors are responsible to shareholders for the performance of the Company in both the short and longer term. The Board focuses on enhancing the interests of all shareholders to ensure that the Company is properly managed.
Currently the Board is comprised of both executive and non executive directors with a majority of non executive directors. The non executive directors assess Aus Bio’s strategic direction, risk and review management performance.
The Chairman has been elected by the full Board. The Board’s skills contain a mix of directors from difference professional backgrounds.
Due to the Company’s small size, specific nomination, remuneration and audit committees have not been established. However, independent directors have the opportunity to meet on a regular basis (without executive directors present) to discuss executive performance, remuneration and other relevant issues. The Board as a whole has responsibility to adequately assess research, commercial and financial risk.
The Board has required that at all times Company personnel act with the utmost integrity and objectivity in compliance with both the letter and the spirit of the law.