Biotechnological business is the application of living organisms to make commercial products. The primary field of biotechnology is medicine and related products like vaccines. Biotechnology is also utilized in heavy industry and agriculture, including mining, with products like biopesticides or ethanol. Many large pharmaceutical companies have separate divisions that deal with biotech-based medicine. Some of these are derived from living organisms, whereas others have a chemical basis. This distinction is important because both industries have distinct risk characteristics.
A biotech business can be expensive to run due its extensive research and development. A successful drug could yield an impressive financial return. But it can take years for a new product to be available for sale. The FDA approval process is extremely complex and lengthy, requiring preclinical tests www.genotec-frankfurt.de/top-5-simple-virtual-deal-software-for-beginners/ as well as clinical trials and quality monitoring. According to Science Daily only a small percentage of the substances tested make it to market.
Biotech companies can opt to concentrate on technology collaboration or create their own pharmaceutical assets, which they license to big pharma for manufacture and marketing. The majority of biotech startups choose the latter route because it can help increase revenue. However, it is not without risk since they also have to pay for the cost of clinical development regulatory approval, insurance reimbursement negotiations and sales promotion. To limit these risks many biotechs rely on strategic alliances with major pharma and smaller biotechnology platform companies. Massachusetts Biotech’s biotech ecosystem for instance, is comprised of a top teaching hospital, universities as well as entrepreneurs and venture capitalists.
