Biotechnological Business Models

The industry’s focus on living beings that are www.genotec-frankfurt.de/biotechnological-synthesis-of-remedies/ human and the strict standards it enforces create unique considerations for business leaders. These features make the industry an ideal incubator for innovation. They have produced major breakthroughs in biofuels, agricultural yields and life-saving pharmaceuticals.

When it comes to strategies for generating revenue biotech startups have a variety of options. The majority choose either a technology partnership or an asset creation and out-licensing strategy. Technology partnering offers faster revenue and lower risk to the financials, while an asset creation and out-licensing strategy will yield higher returns if successful. An increasing number of biotechs that are in research phase operate a hybrid model which combines both approaches.

Those who choose a product-oriented strategy are more likely to achieve commercial success, if they are able to get their pipelines to the right stage and also find a significant pharmaceutical partner or a financier with deep pockets. This could be a costly option. It is essential to consider the balance between opportunistic strategies in leveraging outside assets and the right scientific decisions regarding homegrown projects.

Alternately, the “platform” model offers an alternative method of earning revenue. It is a less expensive route than the product-oriented development but it comes with significant risks. In this model biotechs create and own their own platform technology, before teaming up with big pharma to create a portfolio of drug discovery projects that target specific diseases (i.e. disease x in biology y). This is the method Advinus Therapeutics and a few others have followed.

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