09 10월 Biotechnological Business Models

The focus of the industry on living organisms of the human species and the strict regulations that it imposes are unique to business leaders. These features make the industry an ideal platform for innovation. They have resulted in major breakthroughs agricultural yields, biofuels, and life-saving pharmaceuticals.

Biotech startups have a variety of options when it comes down to revenue generation strategies, with the majority opting for either a technology partnering or an out-licensing and asset creation strategy. Technology partnering can generate more revenues with less risk of financial loss, while out-licensing and asset creation strategy can yield significantly higher returns when it’s successful. An increasing number of biotechs in the research stage operate an hybrid model that blends both strategies.

The people who select a product-focused strategy can reap commercial success as long as they are able to get their pipelines up to the right stage and attract a large pharmaceutical partner or investor with deep pockets. This can be an expensive venture. It is crucial to balance opportunistic approaches in leveraging https://genotec-frankfurt.de/crispr-genome-editing/ outside assets and the appropriate scientific choices regarding home-grown projects.

The “platform” model is a second alternative to generate revenue. It is less costly than product-oriented research, but comes with a high risk. In this model the biotech owns and develops its platform technology, before collaboration with big pharma firms to generate a portfolio of drug discovery projects that specifically target diseases (i.e. disease that is x within biology and y). Advinus Therapeutics, among others have embraced this model.