Newsroom.

Industry has united in an open letter to call to back Australian life science companies to keep their priceless talent during COVID-19.

AusBiotech stands together with ANDHealth, Medicines Australia, MTAA, BioMelbourne Network and Life Sciences Queensland to urge the inclusion of pre-revenue life science companies in the JobKeeper eligibility criteria.

The six signatories represent medical technologies, digital health, biotechnologies and pharmaceuticals industry sector.

The ATO recently denied industry’s application to expand the JobKeeper payment eligibility criteria to include pre-revenue biotech and medtech companies working in Australia.

Australia’s pre-revenue biotech and medtech companies house priceless talent and intellectual property that could be permanently lost to Australia if they are not able to access JobKeeper to weather the COVID-19 storm.

JobKeeper’s intention is to retain staff and to support businesses to recommence quickly without needing to rehire when the downturn is over. Omitting pre-revenue life science companies has the potential to knock over the entire industry – companies will be ‘moth-balled', innovative research (predominantly clinical trials) parked, and staff let go.

The Government has acknowledged the unintended exclusion of other sectors and developed alternative tests. Charities, including medial research institutes, can now elect to exclude government revenue from the JobKeeper turnover test, thereby enabling them to continue delivering their vital services. Start-ups, including those in the tech sector who have gone through high-growth, can use the alternative ‘decline in turnover’ test that recognises that it may not be appropriate for an entity to compare their current monthly or quarterly GST turnover with the same period a year ago, for example when they are less than a year old.

Without JobKeeper eligibility criteria being expanded to include pre-revenue life science companies, they stand to lose up to a decade of substantial scientific and capital contributions.

The skills needed for this industry are very difficult to source and this will become harder during the road to recovery. These impacts are the exact opposite of the policy’s intent. Access to the JobKeeper scheme will enable staff to remain connected to the company, and will support businesses to recommence quickly without needing to rehire when the downturn is over.

AusBiotech surveyed its membership and found 62 per cent respondents indicating that their clinical trials are being delayed or that recruitment has been paused. This disruption to the clinical trials trajectory will impact patients nationally and globally. The necessity and ability to keep staff on will be vastly impacted by JobKeeper payments.

Life science companies are not immune from the global economic challenges, and many pre-revenue companies are under strain as their clinical trials are halted and delayed and venture capital markets dry up.

We cannot lose the social and economic benefits being delivered through the Australian life sciences sector.

Read the joint industry statement here.