Biotechnological Business Models

The industry’s focus is on living organisms. The highly regulated standards make it a unique concern for business executives. These aspects also make the industry an ideal incubator for technological innovation, resulting in significant breakthroughs that have increased yields in agriculture, produced biofuels, and even led to life-saving pharmaceutical products.

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-based partnerships can produce more revenue and lower financial risk, while assets creation and outlicensing strategies can generate www.genotec-frankfurt.de/top-5-simple-virtual-deal-software-for-beginners/ significantly greater returns. A growing number of biotechs at the early stages of research employ a hybrid approach that combines both strategies.

Those who opt for an approach to development that is oriented towards product will be successful commercially when they get their pipeline to a suitable stage and find a pharmaceutical partner or investor with a large sum of money. This could be a costly option. It is essential to consider the balance between opportunistic strategies in using outside resources and making right scientific decisions regarding home-grown projects.

In addition, the “platform” model is an alternative route to earning revenue. It’s a less costly route than the product-oriented development but it comes with significant risk. In this model, a biotech is the owner and develops its platform technology before joining with major pharma companies to create a portfolio drug discovery projects that target specific disease areas (i.e. disease that is x within biology and y). This is the approach that Advinus Therapeutics and a few others have adopted.