Biotechnological Business
https://genotec-frankfurt.de/biotechnological-synthesis-of-remedies/
Biotechnological business is the application of living organisms for commercial use. The primary field of biotechnology is medicine and related products, such as vaccines. Biotechnology is also used in the fields of agriculture and heavy industry mining, for example, with products like biopesticides as well as ethanol. Many large pharmaceutical companies have a distinct division that deals with biotech-based medicines. Certain of these medicines originate from living organisms, while others are based on chemicals. This distinction is important because the risk profile of these two industries are distinct.
In addition to the risks, a biotech company’s extensive research and development efforts can cause it to be costly to operate. A successful drug could generate an impressive return on investment. But it could take years for a new product be available for sale. The FDA approval process is complicated and time-consuming, requiring preclinical testing and clinical trials as well as quality monitoring. According to Science Daily only a small percentage of the substances tested are approved for commercial use.
Biotech companies have the option to focus their efforts on technology partnerships, or develop their pharmaceutical assets which they then license to big pharmaceutical companies to manufacture and sell. Many young biotechs opt for the latter option due to the fact that it can boost revenue growth. However, it’s not without risk because they have to also pay for the costs of clinical development regulatory approval, insurance reimbursement negotiations and sales promotion. Many biotech companies make strategic alliances to mitigate these risks. These include partnerships with major pharmaceutical companies and smaller biotechnology platforms. Massachusetts Biotech’s ecosystem, for instance, has a leading teaching hospital, universities, venture capital and entrepreneur communities.
