The industry’s focus on living beings that are human and highly controlled standards create unique considerations for business leaders. These characteristics make the industry an ideal place to foster innovation. They have produced major breakthroughs in biofuels, crop yields, and life-saving pharmaceuticals.
When it comes to strategies for generating revenue, biotech start-ups have many options. The majority of them choose a technology partnership or an asset-creation-and-out-licensing strategy. Technology partnering can generate more revenue and lower risk to the financials, whereas assets creation and outlicensing strategies can generate significantly more returns. A growing number of biotechs in the research stage use an approach that blends the two approaches.
The people who choose a product-oriented development strategy can achieve commercial success when they get their pipeline to the right stage and also attract a significant Pharma partner or an investor with a large sum of money. This is a costly option. It is crucial to balance the opportunistic approach of taking advantage of outside resources and the proper scientific decision-making regarding home-grown projects.
In addition, the “platform” model provides an alternative method of earning revenue. It is less costly than product-oriented development, but involves significant risk. In this model, biotechs own and develop their own platform technology, before teaming with pharma companies to create a range of drug discovery projects that target specific diseases (i.e. disease x is a biological condition that causes). This is the strategy Advinus Therapeutics and a few others have taken.
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