Biotechnology is a sector that tackles problems across a wide range of industries from agriculture to medicine. It uses techniques for genetic engineering to make or enhance existing organisms. The most prominent applications include vaccines, pharmaceuticals, and molecular diagnostic tests, but it also allows alternative meat products, separating human cells to grow tissue and gene-edited crops. The majority of drug development projects fail, and it takes a long time to get new drugs on the market. This makes the biotech sector a risky investment for investors, as well as the media focuses on biotech’s high failure rate and long developmental lead times.

One of the most important factors for any biotech investor is the pipeline the company has. In order to be successful, a biotech company must develop a solid clinical trial system that can meet its immediate financial needs. Clinical trials can be expensive and take years to complete. Therefore, a biotech that is successful should have a variety of drugs in Phase 2 or later, and at least some of those in Phase 3 and beyond.

As companies in the R&D stage prepare for product launches, their underlying goals and values will change to offer benefits to patients. This change will lead to new decisions and trade-offs, that require careful consideration of investments, organizational building capacities, as well as culture. Biotech companies that succeed will discover ways to communicate their goals throughout their organization, while maintaining the link to their R&D driven biotech worldwide research. This will ensure that the correct goals are driving the commercial success while supporting continued innovation.