Biotechnology is a sector that addresses problems across a broad range of industries, from medicine to agriculture. It is focused on using techniques of genetic engineering to improve existing organisms or create new ones. The most prominent applications are in the fields of pharmaceuticals, molecular diagnostics, and vaccines. But it can also be used to develop alternative meat products, isolate human cells for tissue development and genetically edited plants. The process of bringing new drugs is time consuming and expensive, and a majority of drug development projects fail. Investors are wary of the biotech industry due to its high failure rate and long development lead times.
One of the most important aspects for any biotech investor is the pipeline that the company has. In order to be successful, a biotech company must develop an efficient clinical trial program that can meet its immediate financial requirements. Clinical trials are costly, and can take years to complete. A successful biotech business should have at least one drug in Phase 3 or beyond and many drugs in Phase 2 or later.
As companies in the R&D stage prepare for product launches, their underlying concept and their culture will shift to provide value to patients. This change will surface new trade-offs and decisions, needing careful consideration of the investment, the organizational structure capabilities, and culture. Biotech companies that are successful will be able to communicate and spread these goals throughout their companies, while maintaining a link to their research-driven R&D. This will ensure that the correct priorities determine the success of commercialization and will also encourage innovation.