The Australian Government's Innovation Report

Some P 3 companies have successfully launched a range of new drugs. These include CSL and MSD’s Gardasil, which
was approved by the US Food and Drug Administration and the Therapeutic Goods Administration in June 2006.
The Centre for International Economics completed an evaluation of the programme’s first year in February
2006. Annual reports from round one participating firms were assessed and a stakeholder survey was completed
to quantify the programme’s inducement effect and to evaluate whether P 3 is achieving its policy aims against
its performance indicators.
The evaluation indicated that P 3 is having a small but significant impact on total investment in pharmaceuticals
R&D in Australia. P 3 prompted a higher overall level of investment in R&D and induced the relocation of
some investment from overseas. The R&D undertaken was also considered to be at the higher risk and higher
value end of the R&D spectrum.
New guidelines for round three funding have been developed, taking into account the findings of this
evaluation and feedback from industry through the Pharmaceuticals Industry Action Agenda. Round three
opened for applications in August 2006.
More information about the P 3 can be found at: www.ausindustry.gov.au
Pharmaceuticals Partnerships Programme shows results
The approval of Aridol by the Therapeutic Goods Administration is an example of a human therapeutic
product developed in Australia from concept to commercialisation.
Pharmaxis Ltd, a round one participant in the Pharmaceuticals Partnerships Programme, announced the
approval on 23 March 2006. Aridol is designed to identify patients with active asthma and provide
information on the severity of the disease and the effectiveness of current treatment. More than two
million people in Australia and 52 million people worldwide live with the disease. Currently, there is no
registered, objective test to measure inflammation and hyper-responsiveness in the airways, which are the
symptoms of active asthma. Aridol fills this gap.
Pharmaxis will market Aridol directly in Australia and is negotiating European marketing agreements
with specialised companies committed to improving standards in respiratory care.
New Industries Development Programme
The New Industries Development Programme (NIDP) aims to improve Australia’s performance in the
commercialisation of new, innovative agribusiness products, services and technologies.
Through initiatives supported under the programme, Australian agribusiness enterprises will gain the business
skills and resources required to successfully commercialise new agribusiness products, services and technologies.
The programme’s outputs will assist agribusiness to increase its capability to identify and respond to demands
from new customers, thereby generating significant and measurable business and job growth over the mediumterm,
particularly in rural and regional Australia.
Under Backing Australia’s Ability, NIDP was a five-year programme with funding of over $20 million to June 2006.
The programme was extended by $14 million to June 2011 through Backing Australia’s Ability – Building Our
Future through Science and Innovation. The funds will be used to provide:
• competitive-based funding to assist small to medium agribusinesses to incubate new innovative niche
agribusiness ventures that encourage through-chain approaches as part of a Pilot Commercialisation
Project (PCP). Funding for PCPs is provided on a matched dollar-for-dollar basis with the applicant,
to a maximum NIDP contribution of $120 000 (including GST);
• competitive-based in-market experience scholarships that enable emerging managers to gain first-hand
experience in specific areas of business management and new markets;
• further distribution of supply chain management and market analysis initiatives to encourage the
adoption of stronger, more innovative solutions to supply chain and marketing arrangements;
Chapter 2 - Initiatives for a dynamic national innovation system 71