Biotechnology is an expanding industry that helps solve problems in a range of industries from agriculture to medicine. It focuses on the use of techniques of genetic engineering to improve existing organisms, or to create new ones. The most prominent applications are pharmaceuticals, molecular diagnostics and vaccines. However, it can be used to create alternative meat products, to isolate human cells to develop tissue, and genetically-edited plants. The process of bringing new drugs is time consuming and costly, and the majority of drug development projects fail. This makes the biotech sector a risky investment for investors, as well as the media focuses on biotech’s high failure rates and long developmental lead times.
The pipeline of a biotech company is one of the most crucial factors for investors. Biotech companies must have a strong clinical trials program to support its short-term financial requirements. Clinical trials are expensive and they take years to be completed. A successful biotech increasing confidence within the biotech industry company must have at least one drug in Phase 3 or beyond, and multiple drugs in phase 2 or later.
As companies in R&D prepare to launch new products their culture and vision will shift in order to bring value to patients. This change will surface new decisions and trade-offs, that require careful consideration of investments, organizational buildup, capabilities, and culture. Successful biotechs will discover ways to clearly communicate and transfer these goals across their entire organizations while ensuring that they remain connected to their R&D-driven research. This will ensure that the appropriate goals are driving commercial success and will encourage innovation.