The focus of the industry on living organisms of the human species and highly controlled standards create unique considerations for business leaders. These aspects make the sector an ideal place to foster innovation. They have produced major breakthroughs in biofuels, agricultural yields and life-saving pharmaceuticals.

Biotech startups have a variety of options for revenue generation strategies, with the majority choosing 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 an asset creation and out-licensing strategy yields higher returns if successful. A increasing number of biotechs at the early stages of research employ a hybrid strategy that combines the two approaches.

Those who choose a product-oriented strategy can reap commercial success, if they are able to get their pipelines up to the right stage, and attract a big pharmaceutical partner or a financier with deep pockets. This can be an expensive proposition. It is important to consider the balance between opportunistic strategies in using outside resources and making https://genotec-frankfurt.de/top-5-simple-virtual-deal-software-for-beginners/ best scientific decisions for the development of home-grown products.

Alternately, the „platform“ model provides an alternative route to earning revenue. It’s a less costly option than the product-oriented development however, it comes with significant risk. In this model biotechs develop and own their own platform technology before teaming with pharma companies to create a range of drug discovery projects aimed at specific diseases (i.e. disease that is x in biology, y). This is the strategy Advinus Therapeutics and a few others have followed.