Biotechnology is an industry that addresses problems across a wide range of industries including agriculture, medicine and. It utilizes techniques for genetic engineering to make or improve existing organisms. The most well-known applications include pharmaceuticals, molecular diagnostics and vaccines. However, it can be used to make alternative meat products, isolate human cells for tissue development and genetically modified plants. The process of bringing to market new drugs can be time-consuming and expensive, and a majority of drug development projects fail. This makes biotech an investment risky for investors, and the media focuses on biotech’s high rate of failure and long developmental lead times.
One of the most important factors for investors in biotech is the company’s pipeline. Biotech companies must have a strong clinical trials program that can meet its short-term financial needs. Clinical trials can be costly and take years 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 companies at the R&D stage prepare for product launches, their core philosophy and culture will shift to provide value to patients. This change will lead to new decisions and trade-offs, that require careful consideration of investments, organizational development capabilities, and culture. Successful biotechs find ways to communicate and spread their goals across their entire organization, while maintaining the link to their R&D driven research. This will ensure that the correct goals drive commercial success while ensuring that they continue to innovate.
