Biotechnology is an expanding industry that assists in solving problems in a wide range of industries from medicine to agriculture. It is focused on using techniques of genetic engineering to improve existing organisms, or to create new ones. The most prominent applications include pharmaceuticals, molecular diagnostics and vaccines. However, it can be used to make alternative meat products, isolate human cells to develop tissue and genetically-edited plants. The process of bringing new drugs is time consuming and expensive, and most drug development projects fail. This makes the biotech industry an investment risky for investors and the media tends to focus on biotech’s high failure rate and long developmental lead times.
The pipeline of a biotech company is among the most important aspects for any investor. A biotech company must have a strong clinical trials program to meet its short-term financial requirements. Clinical trials can be costly and can take years to complete. A biotech company that is successful should include at least a few drugs in Phase 3 or beyond and a variety of drugs in Phase 2 or later.
As R&D firms prepare to launch products that are based on their culture, their perspective will shift in order to bring value to patients. This change will surface new choices and trade-offs requiring thoughtful attention to investments, organizational development, capabilities, and culture. Biotech companies that are successful are able to communicate 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.
