Biotechnological Business Models

biotechnological synthesis of remedies

The focus of the industry is living organisms. The highly controlled standards make it a unique consideration for business executives. These features make the industry a natural source of creativity, leading to major breakthroughs which have improved the quality of agriculture, led to the creation of biofuels and led to life-saving pharmaceutical products.

Biotech startups have a variety of options for revenue generation strategies, with most opting for either a technology partnering or an asset creation and out-licensing strategy. Technology-based partnerships can produce higher revenue and lower risk to the financials, whereas asset creation and outlicensing strategies can yield significantly higher returns. A growing number of biotechs at the research stage use in a hybrid approach that combines both approaches.

If you choose to go with a product-oriented development strategy will succeed commercially if they can get their pipeline to the appropriate stage and attract a large pharma partner or an investor with a large sum of money. It can be a costly proposition but the balance of opportunistic strategies to leverage outside assets with the right scientific decision-making about projects that are homegrown is essential.

The “platform” model is an alternative option to generate revenue. It’s a lower-cost route than the product-oriented development however it carries significant risk. In this model, a biotech owns and develops its platform technology, before partnering with big pharma companies to develop a portfolio of drug discovery projects that specifically target diseases (i.e. disease x within biology y). Advinus Therapeutics, among others have adopted this strategy.