The focus of the industry is living organisms, and the highly controlled standards make it a unique concern for business leaders. These attributes also make the industry an ideal incubator for innovation, leading to some major breakthroughs that have boosted yields in agriculture, produced biofuels, and even led to life-saving pharmaceutical products.
Biotech startups have a variety of options for revenue generation strategies, with most choosing either a technology partnering or an out-licensing and asset creation strategy. Technology partnering offers faster revenue and lower financial risk while out-licensing and asset creation strategy generates significantly higher returns if successful. An increasing number of biotechs that are in research phase operate a hybrid model which combines both strategies.
If you choose to go with a product-oriented strategy can reap commercial success, if they are able to get their pipelines to the right stage, and then find a major pharmaceutical partner or investor with a deep pocket. This is https://genotec-frankfurt.de/comparing-biotechnologically-engineered-nutritious-supplements/ a costly proposition, however, and the balance of opportunistic strategies to leverage outside resources with the right scientific decisions about homegrown projects is crucial.
Alternatively, the „platform“ model is an alternative method of earning revenue. It’s a less costly method than the development-oriented model however, it comes with substantial risk. In this model, a biotech owns and develops its platform technology prior to working with large pharma companies to create a portfolio drug discovery projects that are targeted at specific diseases (i.e. disease x within biology y). Advinus Therapeutics, among others, have adopted this approach.
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