Made in Australia: ASX firms boosting local health and medical manufacturing

Healthcare and medical manufacturing in Australia is gaining momentum with ASX companies at the forefront of growth.

Australia's healthcare and medical manufacturing sector is on the rise. Pic via Getty Images

• Healthcare and medical manufacturing in Australia is gaining momentum supported by initiatives from federal and state governments

• CSL, IDT Australia, Optiscan and Trajan Group among healthcare companies with manufacturing facilities in Melbourne

• EZZ Life Science said manufacturing in Australia is one of its "biggest selling points" into China and Southeast Asia

While Australia's healthcare system often faces criticism it ranks first among OECD countries for equity and healthcare outcomes, and holds third place for overall healthcare performance.

Australia is renowned for its excellence in life sciences research, consistently ranking among the top 10 nations. Now healthcare and medical manufacturing is also gaining momentum with ASX companies at the forefront.

As the country moves to reduce reliance on overseas supply chains, driven by global disruptions like covid-19 and rising geopolitical tensions, government investment in medical manufacturing is on the rise with the sector traditionally enjoying bipartisan support.

The $15 billion National Reconstruction Fund allocated $1.5bn toward medical manufacturing as a priority area, while the $22bn Medical Research Future Fund also supports the sector.

Australia’s RNA Blueprint, which builds on the Medical Science Co-investment Plan, focuses on RNA vaccines and complex therapeutics with potential to add up to $8bn to GDP over the next decade.

The NSW government has invested $134.5m in a viral vector manufacturing at Westmead catering for growing demand for clinical-grade viral vectors for gene and cell therapies R&D and clinical trials.

Morgans senior healthcare analyst Scott Power told Stockhead that with geopolitical tensions there may be a swing back to even more manufacturing in Australia.

"How quickly that happens is the question," Power said.

"Australian governments are certainly working towards achieving a larger proportion of manufacturing to be done in Australia including in the healthcare sector."

Big investments from big end

The ASX's largest healthcare company CSL (ASX:CSL) has made a $2bn investment in recent years in its Australian manufacturing facilities with CSL Behring now having the largest plasma fractionation facility in the southern hemisphere in Melbourne.

CSL Seqirus in Melbourne's Parkville produces essential products for Australia, including antivenoms and the Q fever vaccine, while its Tullamarine facility, set to be operational in 2026, will be the largest cell-based vaccine manufacturing facility in the southern hemisphere.

Other large cap ASX health stocks leaders in sleep-related respiratory disorders, ResMed (ASX:RMD) and hearing tech company Cochlear (ASX:COH), also have manufacturing facilities in Australia.

Multinational pharmaceutical giant and NSYE-listed Pfizer announced last year it had invested $150 million to develop advanced pharmaceutical production facilities in Melbourne for new treatments tackling antimicrobial resistance, a major global health threat.

And in December Nasdaq-listed Moderna opened a messenger ribonucleic acid (mRNA) manufacturing facility at Monash University's Clayton campus backed by the federal and Victorian governments.

"Covid taught us how important it is to have the capability to manufacture the latest vaccines here in Australia," federal health minister Mark Butler said.

Victoria powers ahead in medical manufacturing

​Melbourne's medical manufacturing sector continues to see significant growth, bolstered by substantial investments from Victoria's government and companies, with a supportive ecosystem integrating education, R&D and industry.

IDT Australia (ASX:IDT) is a leading contract development and manufacturing organisation (CDMO),  producing pharmaceutical products for local and international clients.

Its Melbourne manufacturing facility is cGMP compliant and regularly audited by the US Food and Drug Administration (FDA) and Australian Therapeutic Goods Administration (TGA).

In recent years IDT Australia has expanded into advanced therapies, namely antibody drug conjugates (ADCs) along with mRNA vaccines, considered two high-growth areas in the biotech sector.

"Our expansion into advanced therapies is one of the key reasons why our first half revenue has jumped by 83% to $10.5 million," CEO Paul McDonald told Stockhead.

"Further, IDT is one of the few contract manufacturers in Asia Pacific with the capability and expertise to produce mRNA and ADCs treatments.”

Optiscan (ASX:OIL) CEO and managing director Dr Camile Farah told Stockhead all  R&D and product manufacturing was conducted at its Melbourne headquarters.

Optiscan is a leader in developing, manufacturing, and commercialising confocal endomicroscopy imaging technologies with its technology, known as optical biopsy, generating real-time microscopic images, potentially eliminating the need for physical biopsies.

"Optiscan’s global headquarters are in Mulgrave in the heart of the ever-expanding and dynamic Melbourne medtech/biotech hub," Farah said.

"Here, we have ready access to a skilled workforce, close proximity to world class universities, and a slew of medtech consulting and manufacturing firms at our doorstep to partner with.

"We’re proud to be part of this vibrant Victorian ecosystem."

Founded in Melbourne in 2011 by CEO Stephen Tomisich and his wife Angela, Trajan Group (ASX:TRJ) develops and manufactures analytical science instruments, devices, and solutions for healthcare, food, and environmental analysis.

In simple terms, Trajan designs and produces a variety of physical components, consumables and laboratory automation platforms that work together to enable laboratories to measure samples and provide analytical results.

Trajan now operates seven manufacturing sites globally including at its Melbourne headquarters in Ringwood, with customers in more than 100 countries.

READ Biocurious: When it comes to accurate measuring, the sky’s not the limit for Trajan

Investment in sterile pharmaceutical manufacturing

The Clever Culture Systems (ASX:CC5) APAS (automated plate assessment system) Independence instruments (culture plate readers) remains the only US FDA-cleared AI technology for automated culture plate reading.

The APAS Independence instruments automatically analyse culture plates, detect microbial contamination and classify growth as significant or non-significant.

While focused on the larger markets in the US and Europe, CEO and managing director Brent Barnes told Stockhead the company had observed increased investment in Australia for sterile pharmaceutical manufacturing.

Last year, Perth-based CDMO NovaCina bought one of Clever Culture's APAS Independence instruments.

The facility was previously part of Pfizer’s global manufacturing network that was acquired by US private investment firm, Bridgewest Group.

"With respect to big pharma, AstraZeneca has purchased nine of our APAS Independence instruments for rollout across their largest manufacturing facilities globally," Barnes said.

"One of those sites is their facility based in Sydney we plan to install APAS Independence in the next couple of months."

Barnes the company's commercialisation strategy was targeted on the largest sterile drug-manufacturing companies globally.

"These companies have manufacturing facilities all over the world and it’s great that some of these large companies are making investments in Australia," he said.

"We are proud to have the opportunity to sell our Australian developed and manufactured technology within Australia, which has typically been a much smaller market globally."

Australian manufacturing one of EZZ's 'biggest selling points'

EZZ Life Science (ASX:EZZ) chairman and former COO and CEO of Ausbiotech Glenn Cross told Stockhead it used two pharmaceutical CDMOs in Sydney to manufacture all of its products, except for its functional food line which was manufactured in New Zealand.

EZZ has a focus on genomic R&D to address four key human health challenges including genetic longevity, human papillomavirus (HPV), children’s care and weight management.

The company has a strong omni channel distribution network across Australia, New Zealand, China and Southeast Asia for its range of products, including health supplements, probiotics and skin care.

"The fact that we manufacture our products in Australia under good manufacturing practice (cGMP) principles and they are registered with the TGA is absolutely crucial to our sales in China and Southeast Asia," Cross said.

"It's one of our biggest selling points."

Cross said EZZ had recently entered into a manufacturing agreement with GLSP Inc to serve as its US-based manufacturer as it plans to start selling products in the world’s largest healthcare market in H2 FY25.

"We've just had our first nine products approved by the FDA," Cross said.

"Based on the geopolitical scene at the moment, especially with tariffs in the US we've found a local manufacturer to manufacture products just for the US market."

Orthocell growing Perth manufacturing facility

Regenerative medicine Orthocell (ASX:OCC) is focused on advancing tissue repair with a focus on bone, nerve and tendons with a manufacturing facility based at its headquarters on the grounds of Murdoch University in Perth.

Orthocell's Striate+ is a collagen barrier membrane used to support guided bone and tissue regeneration in dental implant procedures.

Remplir is a collagen wrap used to augment nerve repair surgery. Both products are approved in 10 jurisdictions globally, while the company is awaiting US FDA-approval for Remplir, expected this month.

"We continue to grow our Perth manufacturing facility, contributing to the Australian life sciences ecosystem and providing jobs and career pathways in the specialty," CEO and managing director Paul Anderson told Stockhead.

"The company has worked to maintain intellectual property and manufacturing capability in Australia and is perfectly poised to provide world-leading products globally."

At Stockhead, we tell it like it is. While Clever Culture Systems, Optiscan, EZZ Life Science and Orthocell are Stockhead advertisers, the companies did not sponsor this article.

Originally published as Made in Australia: ASX firms boosting local health and medical manufacturing