The focus of the industry is living organisms, and the highly controlled standards make it a unique concern for business leaders. These characteristics also make the industry an ideal incubator for technological innovation, resulting in major breakthroughs that have improved the quality of agriculture, led to the creation of biofuels, and resulted in life-saving pharmaceutical products.
Biotech companies that are starting out have many options for revenue generation strategies, with most choosing either a technology partnering or an out-licensing and asset creation strategy. Technology partnering can bring more revenue and lower financial risk, while outlicensing and asset creation strategies can yield significantly greater returns. A growing number of biotechs that are in research phase operate an hybrid model that blends both approaches.
The people who select a product-focused strategy can achieve commercial success when they are able to bring their pipelines to the right stage and then find a major pharmaceutical partner or investor with deep pockets. This could be a costly option. It is essential to balance opportunistic approaches in using outside resources and making proper scientific decision-making regarding the development of home-grown products.
In addition, the “platform” model can provide an alternative way to earn revenue. It’s a cheaper option than the product-oriented development, but it also involves significant risk. In this model the biotech owns and develops its platform technology, before collaboration with big pharma firms to develop a portfolio of drug discovery projects that are targeted at specific diseases (i.e., disease that is x within biology and y). This is the model www.genotec-frankfurt.de/biotechnological-synthesis-of-remedies/ Advinus Therapeutics and a few others have adopted.
