Australian Dental Association Inc. Cooperative Research Centres Programme Review

Transcription

1 Australian Dental Association Inc. Cooperative Research Centres Programme Review Australian Dental Association Inc Chandos Street St Leonards NSW 2065 PO Box 520 St Leonards NSW 1590 Tel: (02) Fax: (02) Website:

2 About the Australian Dental Association The Australian Dental Association Inc. (ADA) is the peak national professional body representing the vast majority of Australia s 15,000 registered dentists as well as dentist students. ADA members work in both the public and private sectors. The primary objectives of the ADA are to encourage the improvement of the oral and general health of the public and to advance and promote the ethics, art and science of dentistry and to support members of the Association in enhancing their ability to provide safe, high quality professional oral healthcare. There are ADA Branches in all States and Territories other than in the Australian Capital Territory. Membership by individual dentists of ADA Branches confers automatic membership of the ADA. Further information on the activities of the ADA and its Branches can be found at Executive Summary The ADA is pleased to have the opportunity to make a submission to the Cooperative Research Centres (CRC) Programme Review. While the ADA has limited experience with all CRCs it is aware that there have been some very successful ones, including the Oral Health (OH) CRC, and some not so. The CRC programme is the right vehicle for achieving the Australian Government s priorities for applied science and research. It does this by allowing the research sector to work with small and medium enterprises to meet their needs that in turn also provide a research benefit in crucial areas such as health. The commercial success generated by the OH CRC s collaborative model illustrates to the ADA that there is sufficient demand within the research sector and industry for the CRC programme. Despite the programme s success, the ADA believes there are several areas for improvement. Overheads need to be reduced by simplifying the complex regulation governing CRCs, reducing the high transaction costs associated with establishing centres and decreasing leakage of centre resources to compliance costs. The complexity and cost of fitting CRCs into the commercial environment including compliance, reporting and tax issues associated with collaborative relationships should also be addressed. The three year review of CRCs should be better utilised to identify those that are not working. The ADA suggests that the structure of research funding in Australia change. CRC programme funding is currently categorised so as to attract less infrastructure funding for universities than competitive grant schemes such as the National Health and Medical Research Council (NHMRC) and Australian Research Council grants (ARC). If CRC programme funds were classified as competitive grant funds, Australia s universities would be better incentivised to participate in and support applied research that translates into commercial outcomes. The ADA also urges the Australian Government to provide a longer term funding commitment for research to deliver commercial outcomes and economic impact. 2

3 The ADA s submission revolves around how the CRC programme has enabled the OH CRC to deliver positive outcomes for oral health in Australia by working with research and industry in a commercially beneficial manner. The CRC programme is working, and should be supported and improved, to ensure that the success of CRCs such as the OH CRC continues, and that all CRCs can also deliver positive economic and social outcomes for Australia. A. Is the CRC programme the right vehicle for achieving the Government s priorities for applied science and research? If not, what sort of programme would be more effective? Australia s oral health burden The $8.4 billion annual economic burden of oral disease is a major challenge facing Australia. More than 60,000 Australians are hospitalised for preventable dental conditions each year. We also see one in three people affected by chronic periodontitis, an inflammatory disease affecting the gum and bone tissue. Oral disease also significantly impacts on the broader health profile of the Australian population. Periodontitis has been linked to an increased risk of cardiovascular diseases, orogastrointestinal tract and pancreatic cancer, pre-term and low birth weight babies and other systemic diseases related to the regular bacteraemia and chronic inflammation associated with the disease. With national health budget costs increasing at approximately 10 per cent annually, effectively tackling the burden of oral disease through preventive measures has crucial implications for current and future health funding. The Oral Health CRC The achievements of the OH CRC illustrate how the CRC programme is able to achieve the Australian Government s priorities for applied science and research that results in positive commercial, economic and social outcomes. The OH CRC seeks to reduce the economic and social burden of oral diseases on Australians. It is a successful collaboration between several universities and industry parties including Australian biotechnology company CSL, the functional food company CEPL Mondelez and global dental materials manufacturer GC Corporation. By combining world-class multidisciplinary researchers with Australian manufacturers and global marketing experience, the OH CRC is helping to make Australia a global leader in oral health. The OH CRC delivers reductions in the burden of oral health disease: By providing research to companies that produce commercial products benefiting the health of Australians, the economy and reducing the burden of oral disease costs; 3

4 Via dentists and health professionals who treat patients; Via public health services and new methods of prevention and early detection; and By improving the quality of life of Australians. The OH CRC s structure specifies areas of commercial interest and entitlement up front by allocating defined intellectual property (IP) fields for each party. This allows the OH CRC to bring together commercial and academic parties to conduct applied oral disease research in an environment that can rapidly translate research discoveries into the development of commercial products. Impacts In 11 years of operation, the OH CRC and its predecessor have significantly reduced the burden of oral disease with impacts for the Australian Government, people and industry. The $3 million annual Australian Government contribution to the OH CRC has already resulted in commercial turnover success worth more than $2 billion for the Recaldent technology alone (discussed further below). The OH CRC directly influences the way dental services are provided 80 per cent of Australian dentists use the OH CRC s products, considerably reducing the risk of oral disease. This in turn has positive flow on effects, putting downward pressure on public and private dental expenditure. The OH CRC is poised to introduce a world-first oral health vaccine which will deliver a major reduction in health care costs for government budgets and patients. Case Studies 1. Development of an oral care manufacturing industry The OH CRC s research has led to the establishment of Australian manufacturing capability. Recaldent is manufactured in Scoresby, Melbourne, by Cadbury Enterprises Pte Ltd (CEPL/Mondelez). Recaldent is incorporated into a number of commercial products that have resulted in over $2 billion worth of global product sales to date. These include 1. Tooth Mousse Plus, a professional dental tooth crème used to remineralise tooth enamel containing Recaldent and fluoride; 2. MI Varnish TM, which is a professional dental product containing Recaldent TM and fluoride that is used to protect against dental caries and tooth sensitivity. It has been shown to be the superior dental varnish currently on the market and has been well received by dentists in the United States. It is marketed by GC Corporation; 3. Fuji VII-EP glass ionomer cement containing Recaldent TM and fluoride as well as the combination of Dry Mouth Gel; 4

5 4. Tooth Mousse Plus for the treatment of salivary deficiency. These products continue to perform well in their international markets; and 5. The OH CRC has also been involved in clinically validating a new formulation of sugar-free chewing gum containing Recaldent TM which is planned for commercial release in late Creating unexpected collaborations The OH CRC has enabled a partnership between The University of Melbourne, Australian biotechnology company CSL and GC Corporation (through GC Australasia Pty Ltd), to develop a diagnostic for chronic periodontitis. In this collaboration, Melbourne University has identified a bacterium strongly associated with chronic periodontitis. CSL manufactures the diagnostic antibodies and GC has developed the chairside kit, for use by dentists and periodontists. The diagnostic will enable early detection of the pathogenic bacterium resulting in early treatment/prevention and better patient outcomes. It will be commercially released in Vaccine development Without the OH CRC, research into oral health vaccines would be undertaken only at the University of Melbourne and there would be no facilitation body to get the technology to the stage that Sanofi Pasteur is ready to commit a billion dollars for commercial development. The OH CRC has provided the expertise and funding for the proof-of-concept oral health research involving state-of-the-art oral microbiology, immunology and clinical periodontology that has attracted Sanofi Pasteur. Without the CRC programme funding, there would not be the resulting IP portfolio Sanofi Pasteur would have partnered with a US based research group. 4. Translating research into practice By establishing evident, an oral health research network, the OH CRC has been able to achieve the early translation of research into practice. evident is bringing world-leading researchers and small and medium enterprises together to change the practice of dentistry from a highly-interventionist approach to minimal intervention and preventive approaches with far superior patient outcomes. B. How can the government s investment in the CRC programme better deliver outcomes for industry? C. How can the government s investment in the CRC programme further drive more frequent and more effective collaboration between industry and the research sector? 5

6 D. How could contractual and administrative requirements of the CRC programme be streamlined? In order for all CRCs to achieve levels of self-sufficiency, while the Australian Government must maintain its support for the CRC programme, the following improvements are recommended: Overheads need to be reduced by simplifying the complex regulation governing CRCs, reducing the high transaction costs associated with establishing centres and decreasing leakage of centre resources to compliance costs. The complexity and cost of fitting CRCs into the commercial environment including compliance, reporting and tax issues associated with collaborative relationships also needs to be addressed. The ADA also suggests that the structure of research funding in Australia changes. CRC programme funding is currently categorised so as to attract less infrastructure funding for universities than competitive grant schemes such as NHMRC and ARC grants. If CRC programme funds were classified as competitive grant funds, Australia s universities would be better incentivised to participate in and support applied research that translates into commercial outcomes. For medical research, a four-year timeframe such as that proposed under the Industry Growth Centre model, is insufficient to deliver commercial outcomes and economic impact and meet the outcome sought from government funding. CRCs need a long term commitment to demonstrate the value proposition for industry before they will devote long term funding. The ADA understands that the OH CRC plans to transition itself to be an Oral Health Institute (OHI) by Any associated changes that assist this process would be valuable. The university based, industry-led institute would facilitate world-class collaborative research, underpinning science and technology development that will build capacity, performance and effectiveness of the oral health industry in Australia. The OHI plans to be a self-sufficient collaboratory, funded through an allocation of funds from the revenue streams of CRC s commercialisation vehicle, Oral Health Australia Pty Ltd. E. Is there sufficient demand within the research sector and industry for a programme that builds collaborative structures that facilitate end-user driven research? Based on the commercial success generated by the OH CRC s collaborative model, the ADA is confident that there is sufficient demand within the research sector and industry for the CRC program that supports such collaborative structures, given the correct conditions. The OH CRC s main industry partners are Cadbury Enterprises Pte Ltd CEPL/Mondelez, CSL Limited and the GC Corporation. Below are direct quotations from the OH CRC s commercial partners: 6

7 CSL Limited The research being conducted at the Oral Health CRC is leading edge and highly internationally competitive. It is the quality of this research and international reputation of the Oral Health CRC scientists that has facilitated the partnership with the global vaccine company Sanofi Pasteur GC Corporation Dr Andrew Nash, Senior Vice President of Research, CSL. The researchers at the Oral Health CRC understand the importance of outcome-based research and closely involve the commercial partners in project management to ensure a commercial focus. This is why the Oral Health CRC is highly effective with impressive innovation and research translation. Working in partnership the Oral Health CRC has successfully commercialised dental professional products with 3 currently released on the global market and a strong likelihood of more to come CEPL/Mondelez International Stephen Haynes, Managing Director GC Australasia Dental Pty Ltd. The Oral Health CRC has facilitated business partnerships that have sustained a manufacturing business in Victoria exporting an oral care bioactive globally. Furthermore the expertise and international reputation of the researchers at the Oral Health CRC have been essential for us to solve manufacturing and product development problems and to facilitate regulatory approval in multiple jurisdictions Chern Chou Yeow, Director of Business Development, Mondelez International. Conclusion The ADA supports the concept of CRCs but recognises the programme could be improved. It also strongly supports the continuation of the OH CRC which this year received a glowing three year review. Further the ADA would be happy to provide clarification on any of the points made in this submission or further comments if required. Please do not hesitate to contact Mr Robert Boyd-Boland at [email protected],au should you have any questions. Dr Karin Alexander President Australian Dental Association 11 November