Biotechnological business is the use of living organisms to make commercial products. The major area of biotechnology is medicine and related products such as vaccines. Biotechnology is also utilized in heavy industry and agriculture mining, for example, with products like biopesticides and ethanol. Many large pharmaceutical companies have a distinct department for biotech-based medications. Some of these products come from living organisms, whereas others are chemically based. This distinction is important because the two industries have different risk profile.
In addition to the risk, a biotech company’s extensive research and development activities can cause it to be costly to operate. A successful drug could yield a substantial return on investment. It can take years before a new product reaches the market. The FDA approval process is lengthy and complex. It requires preclinical tests as well as clinical trials and quality control. According to Science Daily, only a small percentage of the compounds that are tested ultimately are released to the market.
Biotech companies can opt to focus on technology partnerships or create their own pharmaceutical assets, which they out-license to big pharma for manufacture and marketing. The majority of biotech startups choose the latter option due to the fact that it can increase revenue growth. However, it’s not without risk because they have to also pay for the costs of developing clinical products in addition to regulatory approval, negotiations for reimbursement of insurance and sales promotion. To reduce these risks, many biotechs rely on strategic alliances with major pharmaceutical and smaller biotechnology platforms companies. Massachusetts’ biotech ecosystem, for instance, includes leading universities, teaching hospitals, entrepreneur and venture capital communities.
https://genotec-frankfurt.de/comparing-biotechnologically-engineered-nutritious-supplements/
