https://genotec-frankfurt.de/biotechnological-synthesis-of-remedies/
Biotechnological business is the use of living organisms to make commercial products. The primary Biotechnology area is medicine, as well as related products like vaccines. Biotechnology is used in the fields of agriculture, heavy industry and mining, with products such as biopesticides. Many large pharmaceutical companies have separate divisions dedicated to biotech-based medicines. Some of these medicines are derived from living organisms whereas others are chemically based. This distinction is crucial since both industries have distinct risk profiles.
Biotech companies can be expensive to operate due to its extensive research and development. A successful drug can yield significant financial returns. It can take years before a new product is released to the market. The FDA approval process is lengthy and complex. It requires preclinical testing in addition to clinical trials and quality control. According to Science Daily, only a small percentage of the compounds that are tested eventually make it to the market.
Biotech companies may choose to focus on technology partnership or create their own pharmaceutical assets which they out-license to big pharma for manufacture and marketing. Many young biotechs opt for the former option as it will increase the amount of revenue they earn. It’s not without risks, however, since they also have to pay for the costs associated with clinical development and approval from regulators as well as insurance reimbursement negotiation and sales promotion. To minimize these risks biotechs often make strategic alliances with big pharmaceutical companies and smaller biotechnology platform companies. The biotech ecosystem in Massachusetts for instance comprises top teaching hospitals, universities as well as entrepreneur communities, and venture capitalists.