Biotech is not the automatic wealth and success creator it once was. Here is how to be successful in the new biomed healthcare environment

1. The New Biotech Business Model:
Three biotech business models: Product development; Platform development; Commercial
Sales.
Huge challenges to all models: Massive Competitive Entry; Lack of Financing; Challenging
Partnering Environment; Higher Development Costs & Regulatory Time; Tougher
Reimbursement / Substitution / Selling Environment
Determinants of Drug success: Evidence of Drug Efficacy and Differentiation; Evidence of
Drug Safety; Evidence of Relevance to Unmet Medical Need; Ability to Manufacture (CMC);
Strong Intellectual Property Protection; Large Addressable Market.
How to deal with these challenges?
We have talked to many venture investors to see how they are adapting to the new, difficult
environment. Here are their approaches:: Look for True Innovation; Startups Stay Virtual;
Develop Products that Market and Large healthcares Wants; Critical that Products Either Lower
the Cost of Healthcare or Meet Unmet Survival Needs; Need to Find Friendly Money initially
since Investors want later stage.
Strategic Partnering: Move to large strategic healthcare partners (LSHP) early.
Disadvantage: lose control of product.
Advantages: LSHP compared to the startup:
 is likely to be more experienced ;
 has much more resources;
 is closer to the market and has relevant marketing system.
How to obtain strategic partner? Do self; hire advisor; license strategic partner database.