The industry’s focus is on living organisms, and the strict regulated standards make it a distinct consideration for business leaders. These features also make the industry an ideal source of creativity, leading to major breakthroughs that have boosted the yield of agricultural crops, developed biofuels and led to life-saving pharmaceutical products.
Biotech startups have a myriad of options for revenue generation strategies, with most choosing either a technology partnering or an asset creation and out-licensing approach. Technology partnering generates faster revenue with lower risk of financial loss while an asset creation and out-licensing strategy can yield significantly higher returns when it’s successful. A growing number of research-stage biotechs operate a hybrid model that combines both approaches.
Those who choose a product-oriented strategy can achieve commercial success as long as they are able to get their pipelines to the right level, and attract a large pharmaceutical partner or investor with a deep pocket. This is expensive, however, and making sure that you balance opportunistic methods to leverage outside resources with the right research-based decision making about homegrown projects is crucial.
The “platform” model is a second alternative to generate revenue. It’s a cheaper route than the product-oriented development however, it comes with substantial risks. In this model biotechs develop and own their platform technology before partnering with big pharma to create a portfolio of drug discovery https://genotec-frankfurt.de/comparing-biotechnologically-engineered-nutritious-supplements/ projects aimed at specific diseases (i.e. disease that is x in biology, y). This is the model Advinus Therapeutics and a few others have adopted.