Biotechnology is a booming industry which helps solve problems in a range of industries from medicine to agriculture. It makes use of techniques for genetic engineering to make or improve existing organisms. The most obvious applications include pharmaceuticals, molecular diagnostics, and vaccines. However, it can be used to develop alternative meat products, to isolate human cells to develop tissue, and genetically-edited plants. Most drug development projects fail and it takes a long time to get new drugs on the market. Investors are cautious about the biotech industry due to its high failure rate and lengthy development lead times.

The pipeline of a biotech company is among the most important aspects for investors. Biotech companies must have a robust clinical trials program to meet its short-term financial needs. Clinical trials can be expensive and take years to complete. A successful biotech business should have at least some drugs in the Phase 3 or higher, and multiple drugs in phase 2 or later.

As companies at the R&D stage prepare for product launches, their fundamental concept and their culture will change to offer the best value to patients. This shift will bring about new decisions and trade-offs, that require careful consideration of investments, organizational building capacities, as well as culture. Biotech companies that are successful will be able to communicate and spread these goals throughout their organizations while ensuring a connection to their research-driven R&D. This will ensure the right priorities are driving commercial success, while also fostering innovation.