Biotechnological Business Models

The industry’s focus is on living organisms. The highly regulated standards make it a unique concern for business leaders. These features make the industry an ideal incubator for innovation. They have resulted in major breakthroughs in biofuels, crop yields, and life-saving pharmaceuticals.

Biotech startups have a variety of options when it comes to revenue generation strategies, with most opting for either a technology partnering or an approach to asset creation and out-licensing. Technology partnering can bring more revenue and reduce financial risk, whereas outlicensing and asset creation strategies can yield significantly greater returns. A growing number of biotechs in the research stage use an www.genotec-frankfurt.de/biotechnological-synthesis-of-remedies/ approach that blends the two approaches.

Those who opt for an approach that is focused on product development can be successful commercially when they are able to get their pipeline to the right stage and also attract a significant pharma partner or an investor with deep pockets. It can be costly however, and making sure that you balance opportunistic methods to leverage external resources with research-based decision making about homegrown projects is key.

Another option is the “platform” model is an alternative path to revenue. It is less costly than product-oriented development, but has a significant risk. In this model biotechs create and own their platform technology before partnering up with big pharma to develop a collection of drug discovery projects that target specific diseases (i.e. disease of x in biology). This is the strategy Advinus Therapeutics and a few others have taken.