There seems to be a lot of confusion inside the investment community and press with what a biotechn...

1. What is the difference between pharmaceutical company and
a biotechnology company?
There seems to be a lot of confusion inside the investment community and press with what a
biotechnology company is and that of a pharmaceutical company is. This can be essential for many
reasons including just what the perceived value of the company is. It seems that this certainly will
certainly not change lives but a company's financial statements, sized the addressable market in the
proposed drug and potential increase of the organization ought to govern the corporation's market
capitalization.
In an effort to simplify the real difference between what a biotechnology along with a
pharmaceutical company often the process for manufacturing the drug or therapeutic agent seems
to be the common proxy. The most typical what to characterize whether a firm can be a
biotechnology company or even a pharmaceutical company is if recombinant DNA is used because
process for manufacture of a drug candidate versus biotechnology company by using a chemistry
process to synthesis the drug candidate. This is an oversimplification. A biotechnology company can
be a pharmaceutical company but a pharmaceutical company might not exactly often be a
biotechnology company.
Generally, the press, it community along with the most typical classification systems for
characterizing what industry a business developing drugs is at is likely to classify all companies as
being a biotechnology companies depending on if they drug development process is according to
utilization of recombinant DNA in lieu of chemical synthesis. This categorization isn't necessarily
mutually exclusive and leads to confusion for potential investors. It also brings about poor
taxonomies and descriptions of that of a biotechnology company is. A biotechnology company could
be a pharmaceutical company.

2. A pharmaceutical company should be
service repair shop with a drug
approved for the sale and make use of
for a condition or condition with the
Food and Drug Administration
("FDA"), European Medicines Agency
("EMEA") or other similar regulatory
body. Whether a pharmaceutical
company used recombinant DNA
process versus chemical synthesis
should be irrelevant for determining
whether it can be a pharmaceutical
company. However, it can be relevant
for determining whether a firm is or
isn't a biotechnology company. If a
firm comes with a approved product
or perhaps still creating a drug, it can
be quite a biotechnology company
providing it is utilizing a
biotechnology process including
recombinant DNA to build up its
drugs. They are not mutually exclusive
inside the characterization of a
business biomedical engineering jobs
that develops or markets drugs. See
HealthcareFirms.com for the good
taxonomy structure.
It s better to characterize companies that have drugs approved for
treating a common condition or disease as a pharmaceutical
company. There are huge companies with significant revenues for
example Biogen Idec, Amgen, and Genetech whose items are
determined by the biotechnology procedure that are generally
biotechnology companies and pharmaceutical companies. But you
will find others which have drugs solely based on chemical
synthesis which are not biotechnology companies. Clarifying this
might reduce significant amounts of confusion inside the investment
community and could lead to more rational valuations which are
based solely on financial statement and revenue growth rather than the belief that biotechnology
companies are performing something unique and merit an increased valuations.