Biotechnology - Genomic and Proteomics/Competitive advantages in BGP: Difference between revisions
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***Multiple points of potential monetization in the drug development process | ***Multiple points of potential monetization in the drug development process | ||
***Proof-of-concept demonstrations | ***Proof-of-concept demonstrations | ||
***More generally, investor confidence in the possibility of bringing a drug to market | |||
==Navigation== | ==Navigation== | ||
[[Bibliography for Item 5 in BGP]]<br> | [[Bibliography for Item 5 in BGP]]<br> | ||
[[Biotechnology_-_Genomic_and_Proteomics]] | [[Biotechnology_-_Genomic_and_Proteomics]] | ||
Revision as of 11:42, 16 March 2009
Answer the questions:
- Define the competitive advantages in the field and the barriers of entry
- Competitive Advantage in Biotech
- Only the top firms make money through sales (http://wistechnology.com/articles/2748/), so the standard aspects of competitive advantage (cost leadership, differentiation, product focus, lead time, etc) do not apply to the field as a whole
- Most firms therefore make their money through VC's or IPO's. For these firms, competitive advantage can be defined along the following lines:
- Success in initial clinical trials (http://www.seattlepi.com/venture/157745_vc23.html)
- Licensing early-stage drugs for fast cash (a typical pharmaceutical company will pay US$65m for a Phase I drug. Compare with US$220m for a Phase III drug) (Hall)
- Multiple points of potential monetization in the drug development process
- Proof-of-concept demonstrations
- More generally, investor confidence in the possibility of bringing a drug to market
Bibliography for Item 5 in BGP
Biotechnology_-_Genomic_and_Proteomics