The focus of the industry is living organisms, and the rigorously enforced standards make it an distinct consideration for business leaders. These aspects make the industry an ideal source of technological innovation, resulting in major breakthroughs which have improved the quality of agriculture, led to the creation of biofuels and led to life-saving pharmaceutical products.
When it comes to revenue-generating strategies biotech start-ups have numerous options. Most choose a technology partnership or an asset creation and out-licensing strategy. Technology partnering can result in more revenue and reduce financial risk, while asset creation and outlicensing strategies are able to yield much greater returns. A growing number of research-stage biotechs operate an hybrid model that blends both approaches.
If you choose to go with an approach that is focused on product development will be successful commercially in the event that they can bring their pipeline up to the right stage and then attract a major Pharma partner or an investor with deep pockets. It can be a costly proposition however, and the balance of opportunistic strategies to leverage external resources with research-based decision making about homegrown projects is essential.
Another option is the « platform » model can provide an alternative path to revenue. It is less expensive than development based on product, but has a significant risk. In this model biotechs create and own their own platform technology before teaming with pharma giants to develop a portfolio of drug discovery projects aimed at specific diseases (i.e. disease x in biology y). This is the model Advinus Therapeutics and a few others have followed.
https://genotec-frankfurt.de/comparing-biotechnologically-engineered-nutritious-supplements/