Biotechnological business is the use of living organisms for commercial use. The main biotechnology field is medicine, and the related products like vaccines. Biotechnology is utilized in agriculture, heavy industry and mining with products such as biopesticides. Many major pharmaceutical companies have a separate department for biotech-based medications. Some www.genotec-frankfurt.de/bio-pharmazeutika-werden-zu-einer-anerkannten-form-der-alternativmedizin/ of these products come from living organisms, while others are chemically -based. This distinction is crucial because these two industries have distinct risk characteristics.
In addition to the risk, a biotech company’s extensive research and development activities can cost a lot to operate. A successful drug could yield significant financial returns. It can take several years before a new product reaches the market. The FDA approval process is complicated and time-consuming. It requires preclinical testing, as well as clinical trials and quality control. According to Science Daily only a small percentage of compounds tested make it to market.
Biotech companies can choose to focus their efforts on technology partnerships or create their own pharmaceutical assets that they then license to big pharmaceutical companies to manufacture and sell. Most young biotechs choose the latter option since it can increase the growth of their revenue. It is not without risk, however, as they must also cover the costs of developing clinical products and regulatory approval as well as insurance reimbursement negotiation and sales promotion. To limit these risks many biotechs have strategic alliances with large pharmaceutical companies and smaller biotechnology platform companies. The biotech ecosystem in Massachusetts for instance comprises top universities, teaching hospitals and entrepreneur communities as well as venture capitalists.
