Start a Biotech Company
Do you have a discovery in the field of biotechnology that would help other industries perform more productively and efficiently for the service of humanity? You can develop that concept and turn it into a commercial success. How?
Read from our guide useful information about how to start a biotech company.
Biotech Company – Science Aspect
Are you a bioengineer or a group of scientists independently working in a lab with your knowledge in biology to produce organisms for industrial waste treatment, for use in the manufacture of food products, antibiotics, hormones, drugs, and other useful chemicals? Or do you work for a university or medical clinic researching the use of living organisms, for example, pathogens, E. coli, or yeasts to modify processes in agriculture, food production? Do you have a discovery that would help other industries meet the demand of humanity, particularly for increased food production and a more effective method of finding cures for diseases? You can turn that discovery into a business venture by starting a biotech company.
Before proceeding to the specifics of starting a business, you would need to hold a strong intellectual property right to that discovery. Has your invention been patented to protect others from stealing your idea? Then you would need to find the right business structure for your venture. This would greatly depend on the funding available to develop a technology platform into a product. With large funding, you can develop a concept and bring it to market or license the right to sell the product to another. If you don’t have enough to go beyond developing a technology platform, you can license it out to a company that does.
Biotech Company – Business Aspect
Yes, funding. Seek out financing from venture capitalists, those people who are the most common investors in these kinds of startups. This marks the shift from science to business. Eventually, running the business would require leadership, managerial and entrepreneurship skills as the organization seeks out funding, and contracts and take care of budgeting, marketing, advertising, and personnel supervision. And this will necessitate the formation of relationships outside the laboratory to the business world. Learning the ropes of business management or hiring one to take care of a company’s operation is one of the major decisions you have to make.
While it is logical for you to enter into this venture in order to monetize your invention, you must understand that a major issue with biotech startups is profitability. If you are developing products, you will need continued financing as the company researches and develops a pipeline. You will continue to need additional financing while you seek regulatory approval for the product and eventually, commercial acceptance. Money may be long in coming, but if your business hits it right, the returns to you are also enormous.
To connect online with professionals in the biotech and pharmaceuticals industry, visit www.biospace.com. Also, visit The Biotechnology Industry Organization.
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For the past 15 years I’ve had an equity finance and real estate development company. In so doing, I have mainly worked in the real estate realm, as in this regional area there was a lot of business putting deals together in that space (until the real estate crash). However, in the last 24-36 months, because of what has happened in real estate, I have branched out and raised equity for businesses in a number of other sectors of the economy.
As I mentioned, I have a brother who has been in Process Development and Contract Manufacturing (biotech) for almost 30 years now. We have been playing with the idea of starting our own biotech company for a few years; especially with the downturn in real estate, I have really been looking into this recently, and seeing what the possibilities might be. Although I have raised tens of millions of dollars in equity over the years for speculation real estate, because I have not personally worked in the biotech space until now, I wanted to reach out to folks familiar with biotech/healthcare consulting/marketing and discuss my thoughts about starting a business such as this, and see what would be the best way to go in carrying out such a venture/s.
My brother is a phd scientist who has a great name for himself in the US and Europe for Contract Manufacturing. He is typically hired by both established biotechs and startups (mainly startups) to handle their Process Development and Contract Manufacturing work, as that has always been his expertise. Typically, he's been hired by a single company, although more and more over the past 5 years he’s worked as an independent consultant/contractor to a variety of companies who need direction in handling their process development/CMO work. He is hired (typically on the VP level) to manage all the work surrounding the production of whatever drug the company is then focused on, whereby he then goes about a) hiring a team of people under him to carry out all the work, which he then oversees; and/or b) hiring a CMO to carry out all the work, which he also oversees. In this role, he has built solid relationships over the years with all the top CMOs in the world, as he has helped the executives in these biotechs negotiate their contracts, and carry out/oversee all their production.
So we'd like to start a CMO Consulting Firm (in essence, greatly expanding on my brother's current "word of mouth" consulting firm), where we would go out and help biotech startups with all their production work. This option is nice because there is very little equity necessary to be raised. The thought was to utilize my brother's intellectual property in process development and my experience in contract negotiation (in helping small biotechs negotiate successful production contracts with major CMOs), and then advise them on all the contract manufacturing work to be completed. Because of my brother's solid relationships with these major CMOs, we could negotiate the best production prices for the startup, and offer them an entire package, from production on through to testing. In so doing, we could negotiate for them the best possible "package" pricing, whereby we would earn contract fees, as well as consulting fees for overseeing the work as it progressed. But the biggest question is: "IS A BUSINESS LIKE THIS VIABLE? IS THERE A BUSINESS OUT THERE FOR A "MIDDLE MAN" OF SORTS TO WORK WITH SMALLER BIOTECHS AND CMO'S TO HELP THE SMALLER BIOTECH ESTABLISH THEIR CONTRACT AND PRODUCTION BASE???"....
In working with a marketing professional one of the main questions I want to ask is if there was some way for us to “partner” in this regard, whereby the professional could earn a fee for helping us establish consulting contracts. Again, the preferred option is to do this with as little up front equity as possible--
If you've read through this, thank you!....please get back to me at your convenience with any thoughts. Kind Regards, Doug
drmanisha1971@gmail.com