Biotechnological Business Models

The industry’s focus on living organisms of the human species and the strict regulations that it imposes provide unique considerations for business leaders. These aspects make the sector an ideal place to foster innovation. They have resulted in major breakthroughs in the production of biofuels and agricultural yields and life-saving pharmaceuticals.

When you think of strategies to generate revenue biotech start-ups have a myriad of options. The majority choose either a technology partnership or an asset creation-and-out licensing strategy. Technology partnering can bring faster revenue and lower risk to the financials, whereas outlicensing and asset creation strategies can yield greater returns. An increasing number of biotechs at the research stage use an hybrid model that blends both strategies.

If you choose to go with an approach that is focused on product development will be successful commercially when they are able to get their pipeline up to the right stage and also attract a significant Pharma partner or an investor with a large sum of money. This could be expensive, however, and managing opportunistic approaches to leverage outside resources while making the right scientific decisions about homegrown projects is crucial.

The “platform” model is another option to generate revenue. It is less costly than product-oriented research, but comes with a high risk. In this model biotechs have the ability to develop www.genotec-frankfurt.de/comparing-biotechnologically-engineered-nutritious-supplements/ their own platform technology, before teaming with pharma giants to develop a portfolio of drug-discovery projects that target specific diseases (i.e. disease that is x in biology, y). Advinus Therapeutics, among others have adopted this strategy.