The focus of the industry on human living organisms and highly regulated standards make it a unique challenge for business leaders. These characteristics make the industry an ideal place to foster innovation. They have resulted in major breakthroughs in the production of biofuels and agricultural yields and life-saving pharmaceuticals.
Biotech startups have a myriad of options when it comes down to revenue generation strategies, with the majority choosing either a technology partnering or an asset creation and out-licensing approach. Technology partnering offers faster revenue and lower risk of financial loss, while an asset creation and out-licensing strategy can yield significantly more lucrative returns if it is successful. A growing number of biotechs in the research stage operate an hybrid model that https://genotec-frankfurt.de/biotechnological-synthesis-of-remedies/ blends both strategies.
If you choose to go with an approach to development that is oriented towards product can be successful commercially in the event that they can bring their pipeline to the appropriate stage and then attract a major pharmaceutical partner or an investor with a large sum of money. This could be costly but 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 offers an alternative way to earn revenue. It is less costly than product-oriented development, but involves significant risk. In this model biotechs own and develops its platform technology prior to partnering with big pharma companies to develop a portfolio of drug discovery projects that focus on specific diseases (i.e. disease x in biology y). Advinus Therapeutics, among others have embraced this method.