Biotechnological Business Models

The focus of the industry is living organisms, and the highly regulated standards make it a unique consideration for business executives. These characteristics make the industry an ideal incubator for creativity, leading to significant breakthroughs that have increased the quality of agriculture, led to the creation of biofuels, and resulted in life-saving pharmaceutical products.

When you think of strategies to generate revenue biotech start-ups have numerous options. The majority choose either a technology partnership or an asset creation-and-out-licensing strategy. Technology-based partnerships can produce faster revenue and lower risk to the financials, whereas strategies for asset creation and outlicensing can yield more returns. A growing number of biotechs in the research stage use the hybrid approach, which combines two strategies.

People who opt for a product-centric approach can be successful commercially, if they are able to get their pipelines to the right stage and then find a major pharmaceutical partner or an investor with a large sum of money. It can be costly but balancing opportunistic approaches to leveraging outside resources while making the right research-based decisions regarding homegrown projects is vital.

The “platform” model is another option to generate revenue. It is less costly than product-oriented development, but has a significant risk. In this model biotechs own and develops its platform technology prior to partnering with big pharma companies to develop a portfolio of drug discovery projects that focus on specific disease areas (i.e. disease x in biology y). This is the model Advinus Therapeutics and a few others have adopted.

Click Here