Now may be the perfect time to invest in the biotech industry. Here’s why…
Due to the the R&D intensive nature of the product development process, the biotech industry has long struggled to achieve aggregate profitability. The lengthy road to product commercialization and weak recent IPO market means that M&A is the most viable exit strategy, and that time to exit has increased, from 6 years in 2006 to 9 years in 2012.
However, unprecedented levels of FDA approvals in recent years, plus a strong product pipeline and a resilient M&A market with established large biotech firms strengthening their capacity to acquire smaller firms makes this an attractive time for the biotech investor who is willing to be creative in how they structure their deals.
Biotechnology (biotech) describes any technological process that harnesses cellular and bio-molecular processes to develop technologies and products that help improve our lives and the health of our planet. Humans have been using the biological processes of microorganisms for thousands of years to make useful food products, such as bread and cheese, and to preserve dairy products.
Modern biotechnology provides breakthrough products and technologies to combat debilitating and rare diseases, reduce our environmental footprint, feed the hungry, use less and cleaner energy, and have safer, cleaner and more efficient industrial manufacturing processes.
Industry & Key Players
Biotechnology companies mainly focus on three areas of application:
Healthcare: Biotech combines nature’s own toolbox with our improved understanding of the human genome to produce medicines and vaccines that help both the prevention and cure of diseases, many of them previously untreatable, as well as helping reduce the side effects of medications by tailoring treatments to individuals.
Best Practices in Biotechnology Business Development: Valuation, Licensing, Cash Flow, Pharmacoeconomics, Market Selection, Communication, and Intellectual Property
Book (Logos Press)