The focus of the industry on living organisms of the human species and highly regulated standards make it a unique challenge for business leaders. These characteristics also make the industry an ideal source of technological innovation, resulting in major breakthroughs that have improved agricultural yields, created biofuels, and even led to life-saving pharmaceutical products.
When you think of strategies to generate revenue biotech start-ups have numerous options. The majority of them choose a technology partnership or an asset-creation-and-out-licensing strategy. Technology partnering can generate more revenue and lower risk to the financials, while out-licensing and asset creation strategy vdr can yield significantly higher returns if successful. A growing number of biotechs in the research stage operate a hybrid model which combines both strategies.
People who opt for a product-centric strategy are more likely to achieve commercial success as long as they are able to get their pipelines to the right level, and also find a significant pharmaceutical partner or an investor with a large sum of money. It can be expensive, however, and managing opportunistic approaches to leverage outside resources while making the right scientific decision-making about projects that are homegrown is vital.
The “platform” model is another option to generate revenue. It is less expensive than product-oriented research, but involves significant risk. In this model, a biotech is the owner and develops its platform technology prior to collaboration with big pharma firms to generate a portfolio of drug discovery projects that target specific diseases (i.e., disease x in biology y). Advinus Therapeutics, among others have embraced this method.
