Biotechnology is the commercial use of living organisms. The major area of biotechnology is medicine and related products such as vaccines. Biotechnology is also used in the fields of agriculture and heavy industry mining, which includes products like biopesticides and ethanol. A lot of large pharmaceutical companies have separate divisions dedicated to biotech-based medicine. Some of these originate from living organisms, while others are based on chemicals. This distinction is important since both industries have distinct risk profile.
Biotech companies can be expensive to run because of its extensive research and development. A successful drug can generate a significant financial gain. But it could take years before a new drug can get to market. The FDA approval process can be complex and time-consuming. It requires preclinical tests as well as clinical trials and quality control. According to Science Daily, only a small percentage of the compounds that are tested ultimately are released to the market.
Biotech companies may choose to concentrate on technology collaboration or develop their own pharmaceutical assets that they out-license to large pharmaceutical companies for manufacturing and marketing. Many biotech companies are taking the latter option since it can accelerate revenue growth. However, it’s not without risk because they also have to cover the costs of clinical development, regulatory approval, insurance reimbursement negotiations and sales promotion. Many biotechs use strategic alliances to reduce these risks. These include partnerships with big pharma companies and smaller biotechnology platforms. Massachusetts’ biotech ecosystem, for instance, is comprised of a top universities, teaching hospitals, entrepreneurs and venture capitalist communities.
https://genotec-frankfurt.de/biotechnological-synthesis-of-remedies/