Biotechnology is the commercial application of living organisms. The major Biotechnology field is medicine, and associated products such as vaccines. Biotechnology is also utilized in the fields of agriculture and heavy industry mining, for example, with products like biopesticides as well as ethanol. A lot of large pharmaceutical companies have a distinct www.genotec-frankfurt.de/comparing-biotechnologically-engineered-nutritious-supplements/ division that deals with biotech-based medicines. Some of these originate from living organisms, while others have a chemical base. This distinction is important since these two industries have distinct risk characteristics.
In addition to the dangers, a biotech firm’s extensive research and development activities can cost a lot to operate. A successful drug can produce significant returns on investment. But it can take years for a new product get to market. The FDA approval process is complicated and time-consuming. It requires preclinical testing in addition to clinical trials and quality control. According to Science Daily only a small percentage of compounds tested get approved for market.
Biotech companies can choose to concentrate their efforts on technology partnerships, or develop their own pharmaceutical assets that they license to large pharmaceutical companies to manufacture and market. Many biotech companies in the early stages choose the former option as it could boost revenue growth. It’s not without risk, however, as they also have to pay for the costs of clinical development and regulatory approval for insurance reimbursement negotiations, and sales promotion. Many biotechs make strategic alliances to mitigate the risks. These include partnerships with large pharmaceutical companies as well as smaller biotechnology platforms. Massachusetts biotech’s ecosystem for instance, is comprised of a top teaching hospital, universities, entrepreneurs and venture capitalists.
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