Biotechnology is a growing industry that solves problems across a variety of fields from agriculture to medicine. It employs methods of genetic engineering to construct or enhance existing organisms. The most prominent applications are in the fields of pharmaceuticals, molecular diagnostics, and vaccines. But it can also be used to create alternative meat products, isolate human cells for tissue development and genetically-edited plants. Making it to market with new drugs is time consuming and expensive, and a majority of drug development projects fail. Investors are skeptical of the biotech sector due to its high failure rate and long development lead times.
The pipeline of a biotech company is among the most important aspects for any investor. To be able to survive, a biotech must build an efficient clinical trial program which can meet its near-term financial needs. Clinical trials can be costly and take a long time to complete. Therefore, a successful biotech should include multiple drugs in Phase 2 or later, and at the very least, a portion of those in Phase 3 and beyond.
As R&D companies get ready to launch new products that will be available to the market, their culture and goals will shift to bring value to patients. This change will lead to new trade-offs and decisions, that require careful consideration of the investment, the organizational structure capacities, as well as culture. Biotech companies that are successful find ways to communicate and spread their goals throughout their organizations while maintaining the connection to their R&D driven research. This will ensure that the right priorities are driving commercial success, while also fostering innovation.
