Biotechnological Business Models

The industry’s focus on living human beings and the strict standards it enforces are unique to business leaders. These aspects make the https://genotec-frankfurt.de/ sector an ideal place to foster innovation. They have led to major breakthroughs in biofuels, agricultural yields and life-saving pharmaceuticals.

When it comes to strategies for generating 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 financial risk, while assets creation and outlicensing strategies can yield significantly higher returns. A growing number of biotechs at the research stage employ a hybrid strategy that combines these two approaches.

Those who opt for the approach of developing based on products will be successful commercially when they get their pipeline to the right stage and attract a large Pharma partner or an investor with deep pockets. This could be a costly investment. It is important to consider the balance between opportunistic strategies in taking advantage of outside resources and the best scientific decisions for homegrown projects.

The “platform” model is a different alternative to generate revenue. It is less expensive than development based on product, but involves significant risk. In this model the biotech owns and develops its platform technology before joining with major pharma companies to create a portfolio drug discovery projects that focus on specific disease areas (i.e., disease x within biology y). Advinus Therapeutics, among others have adopted this strategy.