Melbourne-based biotech firm PolyActiva has raised AU$40 million (US$26.4 million) in a series C funding round to further develop its glaucoma treatment and enhance local manufacturing.

The funding includes AU$27 million (US$17.8 million) from Australia’s National Reconstruction Fund (NRF) and AU$13 million (US$8.6 million) from Brandon Capital, a life sciences investor.

Founded in 2010, PolyActiva has created a biodegradable implant that delivers glaucoma medication directly into the eye over six to twelve months.

The funding will support the company’s ongoing phase 2B clinical trials and help consolidate its research and manufacturing operations in Melbourne.

🔗 Source: SmartCompany

🧠 Food for thought

1️⃣ Government funding reshapes biotech commercialization paths in Australia

Australia’s R&D Tax Incentive has been transformative for the biotech sector, generating $3.14 for every dollar of forgone tax revenue by 2021 and contributing $9.1 billion to the Australian GDP over a decade1.

This enabling environment helps explain why PolyActiva can pursue a different path than many Australian biotechs that “have to do a deal” or sell early, as CEO Vanessa Waddell noted in the article.

The National Reconstruction Fund’s $27 million investment represents a continuing commitment to sovereign capability in advanced manufacturing, following a pattern established with previous investments in companies like Harrison.ai ($32M) and Quantum Brilliance ($13M).

Since 2011, government incentives have catalyzed approximately $7 billion in additional investments in Australia’s biotech sector, creating a foundation for companies to scale domestically rather than being acquired prematurely2.

Australia’s biotech industry now comprises over 1,400 companies employing more than 260,000 people, with sustained policy commitment enabling longer-term R&D planning and reduced financial pressure3.

2️⃣ Medication adherence challenges drive innovation in ophthalmic drug delivery

PolyActiva’s biodegradable implant addresses a critical market need, as less than 50% of glaucoma patients persist with traditional eye drop medications after just one year of treatment4.

With glaucoma affecting over 70 million people globally and projected to reach 111 million by 2040, the market opportunity for improved treatment delivery is substantial and growing5.

Sustained-release implants represent a significant trend in glaucoma management, with multiple sources confirming their potential to dramatically improve treatment adherence compared to daily eye drops67.