Working in the healthcare sector, Cameron Jones CA says he deals with “incredibly smart” scientists. But to be able to create successful businesses, they need help from accountants and advisers.

Founders of biotechnology companies are often working on groundbreaking research and innovative medical products. They need the help of accountants to manage financial and administrative aspects of the business, to allow R&D to be the priority.

To fill that need, Jones and his fellow directors Hamish George CA and Tim Luscombe CA lead Melbourne-based Bio101, a financial services firm that provides accounting, taxation, transaction advisory, company secretarial and graphic design services for companies in the healthcare sector, with a focus on biotechnology, medical technology, and life science organisations.

“I was fortunate to have a mentor who said to me ‘I think these really smart life science CEOs need help from people with your skill set’,” says Jones.

Someone to lean on

“It can be lonely for CEOs. They are at the top but who do they talk to? Most likely the CFO and the board of directors, and this is where we come in. We believe we are particularly helpful as we are involved with a number of companies going through similar needs and challenges.”

Under Bio101 Financial Advisory’s motto, ‘When a generalist won’t do’, the company works with about 100 clients at various stages of commercialisation and growth.

For clients, this offers the cost advantages of outsourcing, while also leveraging the specialist knowledge of the Bio101 team. The firm has built up knowledge and intellectual property, and its advisers are experienced in the nuances of IPOs, capital raisings, and taxation.

“A lot of it begins with how [a startup] manages cash flow. They wish to focus on progressing and developing their technology and allocate capital towards the science, which generates value, rather than investing in a large finance team,” says Jones.

“We sit across numerous companies and learn from the good and the bad, and confidentially share those learnings to help increase the likelihood of success.”

Sharing startup lessons

The sector has unique terminology, which Jones says, “generalist accountants may find challenging.”

Terms such as CMC, the acronym for chemistry, manufacturing and controls; the regulatory path to approval by the Food and Drug Administration (FDA) in the US; and understanding the Australian Research and Development Tax Incentive are just a sample of the specialist subject areas.

“Where we think we can add value, without breaching confidentiality, is to say, ‘one of our clients has experience with this organisation and we can introduce you to them,’” says Jones.

“They can then share their learnings and experiences: ‘If we had our time again, we would have...,’ so there’s a big part of this which is about learning from the experiences of others, and we can help that process.”

Through their contacts in the life sciences sector, Jones and his team will often connect CEOs with others who have gone down the same path and have had similar experiences.

“Some CEOs will ask, ‘Is what we are experiencing normal?’” he says.

“Our clients know we are working across numerous companies, and when they may have a challenging situation, we are able to point them in the direction of someone who may be able to say, ‘Yes, we recently experienced this, and we went about it this way.’

“It is a well-connected industry in Australia, with many directors serving on multiple boards. Our services cater to clients at various stages of growth,” he says.