A Summary of Characteristics of the Bio-pharmaceutical Industry
Bill Gates once predicted that the next richest man in the world replacing him will come from genetic area. With the advancement of modern biotechnology, bio-pharmaceutical industry is getting more and more achievements. Here, I’d like to sum the characteristics of the bio-pharmaceutical industry courtesy of Creative BioMart, the leading biotechnology products manufacturer and distributor.
In general, there are five features:
High-tech: This is reflected in the high level of high-tech talents and technical means. Biopharmaceuticals is a knowledge-intensive, high technology, highly integrated multidisciplinary and mutual penetration new industry. The upstream technology of genetic engineering (i.e. the construction of engineering bacteria) drugs, for example, refer to the synthesis, purification and sequencing of the target genes ; gene cloning, importing; culture and screening of engineered bacteria; the downstream technologies related to the target protein purification and process amplification, product quality testing and assurance. The application of biopharmaceutical gains expanses the research areas for diseases. With this pace, humans’ health standard will be greatly improved.
High-input: Biopharmaceuticals needs considerable investment, mainly for research and development of new products and the plant construction and equipment configuration. At present, a new Biopharmaceutical averagely cost 1-3 billion dollars, and the cost increases with the increase of difficulty. Clearly, strong biopharmaceutical development funds are necessary to maintain success.
Long-circle: from the beginning of development to the end into a product, it takes biopharmaceuticals a lot of links: laboratory research stage, pilot production stage, clinical trials (I, II, III stage), large-scale production stage, the market commercialization stage and strict administration approval process, and product marketing.
High-risk: A new development has great unsure risk for biopharmaceuticals. Each link associates investment and risk of failure. Overall new bio-engineering drug success rate is low, being about 5—10% and spend eight to ten years. In addition, market competition is intensifying.
High-revenue: Bio-engineering drugs has high rate of return. It generally takes 2-3 years to recover cost for a new drug, especially patented product since it will form a technical monopoly, and returns can be up to 10 times and even more.