Biotechnology is an expanding industry which helps solve problems in a wide range of industries from medicine to agriculture. It is focused on the use of techniques of genetic engineering to enhance existing organisms or develop new ones. The most well-known applications are pharmaceuticals and molecular diagnostics, and vaccines. However, it can be used to develop alternative meat products, to isolate human cells to develop tissue and genetically edited plants. Making it to market with new drugs can be time-consuming and expensive, and most drug development projects fail. Investors are wary of the biotech industry due its high failure rate and lengthy development lead times.
One of the most important factors for investors in biotech is the pipeline of the company. To survive a biotech, it must create a solid clinical trial system that will meet its short-term financial requirements. Clinical trials are costly, and take a long time to complete. A successful biotech company should have at least one drug in Phase 3 or beyond and a variety of drugs in Phase 2 or later.
As companies at the R&D stage prepare for product launches, their core concept and their culture will change to provide benefits to patients. This shift will trigger new decisions and tradeoffs that require careful consideration of investments in organizational development, capabilities, and cultural aspects. Biotech companies that are successful have found ways to communicate and spread their goals throughout their organizations, while maintaining the link to their R&D driven research. This will ensure that the correct priorities drive commercial success, while supporting continued innovation.