Biotechnological Business Models

The focus of the industry on living human beings and the strict regulations that it imposes provide unique considerations for business leaders. These characteristics also make the industry a natural incubator for technological innovation, resulting in significant breakthroughs that have increased agricultural yields, created biofuels and led to life-saving pharmaceutical products.

Biotech startups have a variety of options for revenue generation strategies, with most opting for a technology-based partnership or an asset creation https://genotec-frankfurt.de/top-5-simple-virtual-deal-software-for-beginners/ and out-licensing strategy. Technology partnering can generate more revenue and reduce financial risk, while asset creation and outlicensing strategies can yield more returns. A growing number of biotechs at the research stage employ the hybrid approach, which combines both strategies.

If you choose to go with a product-oriented strategy can reap commercial success when they are able to get their pipelines to the right stage, and attract a big pharmaceutical partner or investor with deep pockets. This could be a costly option. It is essential to consider the balance between opportunistic strategies in taking advantage of outside resources and the proper scientific decision-making regarding domestic projects.

The “platform” model is a different option to generate revenue. It’s a lower-cost option than the product-oriented development however it carries significant risk. In this model biotechs have the ability to develop their own platform technology prior to teaming with pharma giants to create a range of drug discovery projects aimed at specific diseases (i.e. disease x is a biological condition that causes). This is the strategy Advinus Therapeutics and a few others have adopted.

(0)

Leave a Reply

*