The federal government’s Medical Research Future Fund (MRFF) has committed funding of $19.75 million to digital health commercialisation organisation ANDHealth.
The funding will be used to expand the ANDHealth+ program to support up to 25 small-to-medium enterprises (SMEs) with high growth potential.
Participants are to be selected by a competitive process and will receive up to $1 million of investment from the ANDHealth Digital Health Accelerator Fund plus assistance from a dedicated ANDHealth support team, access to a C-suite industry advisory panel and specialised services from suppliers pre-vetted by the organisation.
The program will also be supported by ANDHealth’s industry members including the Murdoch Children’s Research Institute, RMIT University, Novartis Pharmaceuticals, Planet Innovation, Roche Australia, Potential(x), Curve Tomorrow, HPM Executive and HealthXL.
Founder and chief executive Bronwyn Le Grice said: “Over the last four years, ANDHealth has become a critical advocate for, and dedicated supporter of, the growth of Australia’s digital health industry.
“This funding represents a significant milestone in the development of Australia’s digital health industry with the establishment of the first dedicated fund providing significant capital investment alongside a proven program of global expertise and support for Australia’s most promising digital health companies.
“Currently, the median amount of capital raised by Australian digital health companies is approximately $250,000. This program will be transformational in providing investment of up to $1 million per company, alongside substantial support and expertise to accelerate the scale-up of these life-changing technologies.”
According to Le Grice, digital health is a nascent industry in Australia but it is growing. Technologies that will be supported under the ANDHealth+ program will be based on computing platforms, connectivity, software and sensors – either alone or in combination with physical products – to diagnose, treat, cure, mitigate and/or prevent diseases and other health conditions. Technologies of this sort typically face extended paths to market with numerous clinical, regulatory and commercial challenges to be navigated along the way.
The specialised skills and real-world experience needed to support the commercialisation of digital health technologies are currently limited and difficult to access in Australia, Le Grice said. The federal government funding will, however, be a catalyst for change enabling the development of a globally competitive digital health industry which will support better healthcare in Australia and generate significant export opportunities.
Based on performance to date of the ANDHealth+ program, Le Grice expects the enlarged program to result in the creation of 1,000 jobs, impact over 500,000 patients, undertake 175 clinical trials, raise more than $130 million in new financing and generate $80 million in new revenue over the next eight years.
ANDHealth expects to open applications for the expanded program in September.
Image: ANDHealth chief executive Bronwyn Le Grice.