The focus of the industry on living organisms of the human species and highly regulated standards create unique considerations for business leaders. These aspects also make the industry an ideal source of innovation, leading to some major breakthroughs that have boosted agricultural yields, created biofuels and helped to create life-saving pharmaceutical products.
Start-up biotech companies have many choices when it comes to revenue generation strategies, with most choosing either a technology partnership or an asset creation and out-licensing approach. Technology partnering can result in faster revenue and lower financial risk, while strategies for asset creation and outlicensing can generate significantly greater returns. A growing number of research-stage biotechs operate an hybrid model that blends both strategies.
If you choose to go with a product-oriented approach can be successful commercially when they are able to bring their pipelines to the right level, and attract a big pharmaceutical partner or an investor with a large sum of money. This is a costly proposition, however, and balancing opportunistic approaches to leveraging outside assets with the right research-based decision making about homegrown projects is key.
Alternately, the “platform” model offers an alternative way to earn revenue. It’s a cheaper alternative to the product-oriented approach but it comes with significant risk. In this model biotechs develop and own their own platform technology prior to teaming up with big www.genotec-frankfurt.de/biotechnological-synthesis-of-remedies/ pharma to develop a portfolio of drug discovery projects that target specific diseases (i.e. disease x in biology y). This is the model Advinus Therapeutics and a few others have taken.