Biotechnology is an industry which solves problems in a variety of industries, from medicine to agriculture. It employs techniques for genetic engineering to make or improve existing organisms. The most visible applications are in the fields of pharmaceuticals, molecular diagnostics, and vaccines. However, it can be used to develop alternative meat products, to isolate human cells for tissue development and genetically-edited plants. Most projects for developing drugs fail, and it takes many years to bring new drugs to market. Investors are cautious about the biotech industry due to its high failure rate and lengthy development lead times.
One of the most important considerations for any biotech investor is the pipeline the company has. Biotech companies must have a solid clinical trials program to meet its short-term financial requirements. Clinical trials can be expensive and can take years to be completed. Therefore, a biotech that is successful should have multiple drugs in Phase 2 or later and at least some of those in Phase 3 and beyond.
As R&D-stage companies prepare for launch of their products, their goals and values will shift to provide value to patients. This change will lead to new choices and trade-offs, requiring thoughtful attention to investments, organizational building, capabilities, and culture. Biotech companies that succeed are able to communicate and transfer their goals across their organization and maintain the connection to their R&D driven research. This will ensure that the correct priorities are guiding commercial success and will encourage innovation.
