Biotechnology is a rapidly growing field that assists in solving problems in a variety of industries from agriculture to medicine. It focuses on the use of techniques for genetic engineering to improve existing organisms or develop new ones. The most obvious applications are pharmaceuticals and molecular diagnostics, and vaccines. However, it can be used to make alternative meat products, to isolate human cells for tissue development and genetically edited plants. The majority of projects for developing drugs fail, and it takes many years to bring new drugs on the market. Investors are skeptical of the biotech sector due to its high failure rate and lengthy development lead times.
One of the most important aspects for investors in biotech is the pipeline that the company has. To survive a biotech business, it must have an efficient clinical trial program that can support its near-term financial needs. Clinical trials are expensive and take a long time to complete. Therefore, a biotech that is successful should have a variety of 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 fundamental goals and values will shift to provide value to patients. This change will surface new trade-offs and decisions, which require careful consideration of the investment, the organizational structure capabilities, and culture. Biotech companies that are successful find ways to communicate their goals throughout their organizations and maintain the connection to their R&D driven research. This will ensure that the right priorities are guiding commercial success, while also fostering innovation.