For success in biotechnology, look beyond biotechnology
Many biotechnology entrepreneurs favorably look back at times when financing and regulatory approval were easier to obtain. While future periods of investor exuberance may return, it is better to see these as market aberrations.
In periods of investor exuberance companies have been pushed to focus on low-probability, high-return, objectives such as approval and successful marketing of novel drugs for large markets. When this strategy works it is very profitable, but the more likely outcome is failure and destruction of wealth. A favorable strategy is to build a slower, stronger, company than can withstand developmental setbacks.
In a recent issue of the Journal of Commercial Biotechnology I expanded on this concept, providing examples from computer software and bioinformatics where initial products were outside of the company’s target market. This strategy can differentiate a company from competitors, provide evidence of ability to successfully execute on plans, and even provide revenues. For more, see the freely-available editorial on the JCB’s website.
Do you agree? Disagree? Sound-off in the comments below.