The industry’s focus is on living organisms. The highly enforced standards make it an unique consideration for business leaders. These characteristics make the industry an ideal incubator for innovation. They have resulted in major breakthroughs in agricultural yields, biofuels, and life-saving pharmaceuticals.
When you think of strategies to generate revenue biotech startups have a variety of options. The majority opt for a technology partnership or an asset creation-and-out-licensing strategy. Technology partnering offers faster revenue, but with less risk to the financials, while an asset creation and out-licensing strategy yields higher returns when it’s successful. A growing number of biotechs in the research stage operate an hybrid model that blends both approaches.
People who opt https://genotec-frankfurt.de/top-5-simple-virtual-deal-software-for-beginners/ for a product-centric strategy can reap commercial success, if they are able to get their pipelines up to the right stage, and attract a big pharmaceutical partner or investor with deep pockets. This can be an expensive investment. It is crucial to weigh the pros and cons of leveraging assets from outside and make best scientific decisions for homegrown projects.
Alternatively, the “platform” model is an alternative route to earning revenue. It’s a lower-cost option than the product-oriented development however it carries substantial risks. In this model, a biotech owns and develops its platform technology, before working with large pharma companies to generate a portfolio of drug discovery projects that are targeted at specific disease areas (i.e., disease x in biology y). Advinus Therapeutics, among others, have adopted this approach.