Servatus Success: how a home-grown biotechnology company chose to go world-class in Queensland
Servatus Success: how a home-grown biotechnology company chose to go world-class in Queensland
The Sunshine Coast is known world over for its beautiful beaches, bushwalking and luxurious lifestyle. But it’s also becoming a hub for Queensland’s growing biotechnology industry, bringing high-value jobs, innovation and investment to the area.
We spoke to CEO of Servatus Biopharmaceuticals Dr Wayne Finlayson, about why a world-class biotechnology company would choose Coolum for their headquarters, the benefits of growing amongst an industry hub and how companies like Servatus are adding value to Queensland communities.
Queensland-led biotechnology research and manufacturing could change the lives of everyday Aussies
In 2012, Dr Finlayson’s experience as a protein engineer led him to jump all-in to an opportunity presented by his friend and soon-to-be business partner, the late Dr Wolf Hanisch, to start a new biotechnology company in Queensland.
“There was a protein discovered in the 1990s that had some effects on autoimmune diseases, but it was dropped because there were some problems in commercialising it. Wolf and I had a conversation about it back in 2010. I’m a protein engineer from way back and I put my hand up and said, ‘I can fix that!’”
Biotechnology is a field of science in which researchers and engineers try to find solutions for problems within industries like medicine. For Servatus Biopharmaceuticals, the mission is to find new and complementary treatments for autoimmune diseases using engineered proteins and live microbial biotherapeutics.
“Our hope is to produce a treatment that can not only fit in with other treatments but be a standalone therapy that has minimal side effects,” says Dr Finlayson.
“There are unmet needs in the space of autoimmune diseases, where current drugs can be effective, but can also have a lot of side effects. We hope for another weapon in the arsenal for medical practitioners to use in the treatment of these diseases, that can also fit in with the current regimes so they can have even better outcomes. Excitingly, that has been borne out in some of our pre-clinical trials with animal studies.”
People living with diseases like Inflammatory Bowel Disease, gastrointestinal conditions like C.diff or H.pylori infections, rheumatoid arthritis and psoriasis stand to benefit from the work Dr Finlayson’s team is doing, many among them living in Queensland. About 5% of the population lives with an autoimmune condition like the ones Dr Finlayson hopes to find new treatments for.
“These conditions have a significant impact on people’s lives, livelihoods, families and communities,” says Dr Finlayson.
Servatus is currently running five clinical trials that they hope will lead to breakthroughs that provide new treatment options for these patients.
“We’re running a trial for a treatment for Inflammatory Bowel Disease (ulcerative colitis) in Boston as well as in the Princess Alexandra Hospital in Brisbane. We’re also going through a trial for insomnia, which is interesting, because your gut has a significant impact on your sleep, at the sleep clinic at the Prince Charles Hospital.”
Lifestyle factors and government support make Sunshine Coast a prime spot for new biotech business
One of the first decisions Dr Finlayson and Dr Hanisch had to make was where to set up their new venture. Both men had split their time working between Australia and California, where the world’s largest biotech cluster of more than 200 companies operate out of San Francisco’s ‘Biotech Valley’. But instead of setting up their business in the US or even in a capital city in Australia, they decided to find a premises on the Sunshine Coast where Dr Hanisch was already based.
“Wolf offered to move to where I was in Brisbane, but I said no, why would you? I’ll come to the Sunshine Coast,” explains Dr Finlayson. “To me, it’s a bit of a no brainer to set up here. About an hour and half down the road you’ve got a capital city, but the lifestyle’s great up here, you’ve got beautiful beaches and so on.”
As the business has grown, new opportunities have arisen. Servatus was approached by an international joint-venture partner about expanding operations from research into production, but Dr Finlayson made sure operations could stay in Queensland.
“When there came the opportunity to have a joint venture with someone who had land in the US to build a production facility, I said, do you have an objection to putting it here?” he says. “And they said no, as long as the business case can be made. And that’s when I went to the Queensland Government for help.”
Servatus is now housed in a state-of-the-art research and production facility in Coolum. The $10.4 million facility was built with support from the Queensland Government’s Advance Queensland Industry Attraction Fund.
“That support from the Queensland Government meant we could build the facility on the Sunshine Coast, instead of moving production to the US.”
Dr Finlayson was right about the benefits of the surrounds and lifestyle on the Sunshine Coast, as staying in Queensland has proved to be a good move for attracting and retaining happy employees.
“Most of the staff say they could not have expected to get a job on the Sunshine Coast, they thought they’d have to go to a major city to get a job like this,” says Dr Finlayson. “I’ve got people from overseas who come here because they are attracted to the area, and they bring with them new knowledge, skills and innovative thought.”
Nearly 40 people are currently employed by Servatus, with approximately 60% of staff from Australia and 40% from overseas, many of whom have travelled to complete their PhDs through research with the company.
Manufacturing onsite saves time and money and creates jobs for Queenslanders
Dr Finlayson says that building Servatus’ production facility in Queensland also makes good business sense.
“It’s a much more efficient and cost-effective way of doing it than taking it offshore. We can conduct research and manufacture products for trials all onsite.”
This production capability has allowed Servatus to add new revenue streams that support the ongoing research arm of the enterprise.
“We now also have an over-the-counter business,” he says. “We can produce a consortium of bacteria that don’t quite work on the therapeutic side of things, say as a treatment for inflammatory bowel disease, but might help the average person. We target specific indications like bloating, acne, constipation, and can sell those products in the over-the-counter market. That means that the research money we’re using is not wasted, it can create those over-the-counter products, that then feed back into the viability of the whole process.”
Innovation and cooperation a boon for companies in Sunshine Coast biotechnology hub
When it comes to working in an innovative field like biotechnology, company is always a good thing. Many Queenslanders don’t know that the Sunshine Coast is becoming a hub for biotechnology. By proactively planning ahead the Queensland Government can co-locate similar specialties and attract businesses like Servatus to the area.
Dr Finlayson says it’s useful for his company and the broader community for the biotechnology companies to exist together.
“There’s beneficial collaboration and it just generates its own ecosystem and environment,” he says. “I think that’s good for the area; it’s high-tech jobs, it creates a good tax base in the area, and industries beyond tourism. The Sunshine Coast is well known for its tourism, but not a lot of people seem to know that there are a lot of companies like us.”
You can keep up to date with the work of Servatus Biopharmaceuticals through their website.
Last updated: 14 Jun 2023