Biotechnological Business Models

The industry’s focus is on living organisms, and the rigorously enforced standards make it an unique concern for business executives. These characteristics make the industry an ideal incubator for innovation. They have resulted in major breakthroughs biofuels, agricultural yields and life-saving pharmaceuticals.

Biotech startups have a myriad of options when it comes down to revenue generation strategies, with most choosing either a technology partnership or an approach to asset creation and out-licensing. Technology partnering provides faster revenue with lower risk to the financials, while an asset creation and out-licensing strategy can yield significantly higher returns if successful. A increasing number of biotechs at the research stage employ an approach that blends the two approaches.

Those who opt for the approach of developing based on products can achieve commercial success in the event that they can bring their pipeline to the right stage and find https://genotec-frankfurt.de/comparing-biotechnologically-engineered-nutritious-supplements/ a pharma partner or an investor with deep pockets. It can be expensive, however, and balancing opportunistic approaches to leveraging external resources with scientific decisions about homegrown projects is vital.

Alternatively, the “platform” model is an alternative method of earning revenue. It is less costly than product-oriented development, but comes with a high risk. In this model biotechs own and develops its platform technology, before joining with major pharma companies to generate a portfolio of drug discovery projects that are targeted at specific diseases (i.e. disease that is x within biology and y). Advinus Therapeutics, among others, have adopted this approach.