The industry’s focus on living beings that are human and the strict standards it enforces create unique considerations for business leaders. These features also make the industry a natural source of innovations, which has led to significant breakthroughs that have increased the quality of agriculture, led to the creation of biofuels, and resulted in life-saving pharmaceutical products.
When it comes to revenue-generating strategies biotech startups have a variety of options. The majority of them choose a technology partnership or an asset creation-and-out-licensing strategy. Technology partnering can generate more revenue, but with less risk of financial loss while an asset creation and out-licensing strategy yields higher returns when it’s successful. A growing number of biotechs at the research stage employ an approach that blends two strategies.
If you choose to go with a product-oriented approach can be successful commercially in the event that they manage to get their pipelines to the right stage and attract a big pharmaceutical partner or a financier with deep pockets. This could be a costly investment. It is important to balance opportunistic approaches in leveraging outside https://genotec-frankfurt.de/top-5-simple-virtual-deal-software-for-beginners/ assets and the appropriate scientific choices regarding home-grown projects.
Alternately, the “platform” model can provide an alternative path to revenue. It’s a less costly method than the development-oriented model, but it also involves significant risks. In this model biotechs create and own their own platform technology prior to teaming up with big pharma to create a portfolio of drug discovery projects that target specific diseases (i.e. disease x in biology y). Advinus Therapeutics, among others, have adopted this approach.