Feature
Issue No. 33 - February/March 2007
Growing the Pharm
Biotechs have been hot investment properties in recent times but Adelaide firm vivoPharm has achieved fast-moving greatness on its own.
vivoPharm, a contract research organisation, offers integrated preclinical services to the biotechnology and pharmaceutical sectors.
Managing Director and CEO, Dr Ralf Brandt saw his opportunity in August 2003 and set up the vivoPharm service in an environment of low competition and favourable economic circumstances.
“We have doubled our turnover every year, to $2.5 million in the third year. We had some funding ¬- the total support was $80,000 over three years,” Ralf says.
Surprisingly, preclinical testing is not a capital intensive business. Setup did not cost an arm and a leg. “We were able to grow within a total capital (investment) of $150,000,” Ralf says. He was pleased with BioInnovationSA's help smoothing the way and making useful connections.
vivoPharm tests prototype drugs on animals to determine their effectiveness, safety, toxicology and how the drug works through the body. It's unusual for one service provider to do all of this and vivoPharm has one-stop-shop appeal.
“We can get a compound in a Petrie dish and end up with a finished product (ready for clinical trials),” Ralf says.
An energetic marketer, he says this capability has stood him in good stead with the vibrant international research community. Turnover proportions currently stand at 65% international and 35% domestic. Distance is a barrier, but not much of one where small samples of drugs are concerned.
“2006 was the year for Australia; we saw many more new clients from Australia,” Ralf says. This was not a matter of acceptance, but lead time - it takes months to bring a drug to the preclinical testing stage and after three years in operation more research facilities are aware of vivoPharm.
But after this local burst Ralf expects long-term growth to come from international busine...
