Wei Garofolo discusses some of the differences found between biotech and pharma.

1. The Difference
Between
Biotech and
Pharma
Wei Garofolo

2. If you’re new to biotech, you might wonder what
the difference is between the biotechnology
industry and the pharmaceutical industry. Both
industries produce medicine, so it’s natural that
they would become intertwined in most people’s
minds. The two get even further confused when
you consider the term “biopharma,” which
describes companies that use a combination of
biotechnology and pharmaceuticals.
Both the biotechnology and pharmaceutical
industries are known for researching and
developing new drugs. Both industries have been
around for hundreds of years, although modern
biotechnology is much more recent. The two have
some key differences, however. Here are the
main differences between biotech and pharma:

3. Biotech companies, by definition, use
the processes of living organisms in
their work. Biotech companies
produce all kinds of products, but
most focus on medicine and
agriculture. Alcohol, plastic, washing
detergents, and cosmetics are all
produced using biotechnology.
Some well-known biotechnology
companies include the Celgene Corp.,
Amgen Inc., Gilead Sciences, and
Biogen Inc. Most biotech companies
are on the smaller side.
BIOTECH

4. On the other hand,
the pharmaceutical industry uses artificial
sources to create new medicines. They test
their products through empirical screenings
rather than genetic engineering.
Major pharmaceutical companies include
Johnson & Johnson, Novartis and Roche, and
Bayer AG. Pharmaceutical companies are
generally larger businesses. They are
usually funded by shareholders and provide
a lower risk business model.
PHARMA

5. As you can see, these two industries differ not only in
how they research and develop products, but also in their
business models. Biotech companies generally rely on
fundraising. As a result, the entire process of coming up
with new ideas to the development, marketing, and sales
of new products is completely different. It is necessary to
“sell” your ideas before obtaining funding for any project.
As a result, some well-merited biotechnology projects go
unfunded. This is rare in the pharmaceutical industry.
The term biopharma refers to big pharmaceutical
companies that utilize biotechnology. So while biotech
and pharma are very different, they do overlap at times.
BUSINESS
MODELS

6. If you were confused about the
difference between biotechnology and
pharmaceuticals, hopefully, you now
have some clarity! Check my blog for
more articles about biotechnology.

7. THANKS!
Blog: WeiGarofolo.wordpress.com
Twitter: @WeiGarofolo
LinkedIn: Wei Garofolo