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Biotech Industry Overview

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Last Updated: 02 July 2021

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The pharmaceutical and biotechnology industry produces drugs and other products that help people and animals live healthier lives, recover from injuries, and fight illnesses. From its humble origins in local pharmacies and apothecaries that prepared home remedies during the Middle Ages, pharmaceutical and biotechnology industry has grown into one OF leading industries in the world today. In United States, it is the third most profitable industry in terms OF percentage OF revenues, is home to cutting - edge biological and chemical RESEARCH, and offers opportunities for people across a wide spectrum of careers, from scientists, physicians, and engineers to marketing and sales workers and human resources professionals. Pharma / biotech companies produce three types OF products: prescription therapeutics and prophylactics, diagnostics, and over - counter consumer products, such as drugs and vitamins. Some experts also place medical technology manufacturing under the umbrella of the pharma / biotech industry. In a general sense, pharmaceuticals are defined as medicinal drugs that are regulated by the US Food and Drug Administration or other regulatory bodies and are manufactured by pharmaceutical companies. Biotechnology, or biotech, is the use of biological RESEARCH techniques to develop products and processes derived from living organisms. Biotechnology techniques are applied at the molecular level and include DNA typing and cloning, genetic manipulation, and gene transfer OF plants, animals, and microorganisms. Biotech products, sometimes called biologics, are products that are created using recombinant DNA Technology. According to FDA, biological products can be composed of sugars, proteins, or nucleic acids, or a combination of these substances. They may also be living entities, such as cells and tissues. In recent years, pharma and biotech sectors have become closely link. Since the mid 1980s, terms biopharmaceuticals and biopharma have referred to both types of products. In that time, many biopharmaceutical firms have emerge, which were OWN by traditional pharmaceutical companies and large drug manufacturers. There are three main types of pharmaceutical companies. Large companies, sometimes know as innovative pharmaceutical companies, produce chemically - derive drugs and have many approved drugs on the market. They run huge RESEARCH, development, and manufacturing efforts, sometimes with subsidiaries around the globe. Some innovative companies also produce biopharmaceuticals. Next are newer firms that often do have ANY approved drugs on the market, but that are involved in developing NEW drugs. Generic drug manufacturers, last type, produce drugs developed by other manufacturers after drug patent expires. Some generic companies also DO original RESEARCH and development to produce NEW drugs. Lines between innovator and generic companies or between pharmaceutical and biotechnology companies have become increasingly blurred, and most major multinationals now incorporate both biologics and generics subsidiaries in their portfolios, according to 2016 Top Markets Report: Pharmaceuticals, from International trade Administration. As the prevalence of biosimilars grows, high manufacturing and regulatory costs involved in developing these drugs further cloud traditional distinctions between innovative and generic business models and INVESTMENT cycles. Pharmaceutical companies are scattered throughout the United States, but the greatest concentrations exist in the Middle - Atlantic States and on the West Coast in California.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Growth Contingencies

Decidedly, few corners of investing in the world are capable of engaging imagination like biotechnology. With all due respect TO companies within the utilities sector, For example, even the most electrifying power companies cannot compete with the heady optimism surrounding companies promising TO apply the power OF science and discovery TO change humanity FOR better. Broadly speaking, biotechnology entails harnessing cellular and molecular processes TO create and manufacture biologic - base technologies and PRODUCTS that help improve lives and the health of the planet. To some extent, growth of industry has been so dramatic that scientific marvels have become almost common mmonplace. In 1997, successful cloning of Dolly Sheep was an international sensation, sparking global conversation about new frontiers of biotechnology, while seemingly blurring lines between science fiction and scientific fact. Following previously inconceivable conception, Dolly became a bona fide celebrity, her face adorning the front page of Time magazine, while commentators and decision - makers opine on how mans revolutionary dominion over DNA would play out. Six years later would mark another mileston e completion OF Human Genome Project, global scientific endeavor that takes roughly 13 years and 3 billion TO successfully complete. Intervening years have seen related technologies dramatically exit exclusive realm OF PhDs and enter the average home. Today, armed with pittance and postage stamp, one can secure personal, on - demand genotyping on the same shopping trip, and with the same ease as securing a bundle of carrots from the produce department. Manipulation of DNA has become a rather common consumer - discretionary good, As it stands, this incredible acceleration of innovation is clear in data and has coincided with a corresponding explosion of investor interest in the growing number of companies involved in these innovative developments. In 2001, according TO National Human Genome Institute at National Institutes OF Health, cost OF DNA sequencing per genome was roughly 100 million. As of 2019, cost OF DNA sequencing has come down to just over 1 000 per genome. As shown in the figure below, drop in cost has outpaced even Moores Law, which was revised in 1975 TO correctly predict that the number of transistors within circuit would double every two years or so. At Wasatch Global Investors, biotechnology has been a meaningful component of our Small Cap Growth and Small Cap Ultra Growth strategies over the past 10 years. Present in figure below are average annual total returns as of June 30 2019 FOR two mutual funds that represent these strategies. As you can see, both Wasatch funds perform very well against their benchmark Russell 2000 Gr owth Index. To get a sense of biotechnology's role in performance over 10 years, we do analysis in which we strip out returns of biotechnology and pharmaceutical stocks in two Wasatch mutual funds and in Index. For analysis, we assume that biotech and pharma stocks were instead invested in all other positions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Regulatory Considerations

How to thrive amid uncertainty? This was question we explored at 35 FT Global Pharmaceutical and Biotechnology Conference. Here are five key industry trends and corresponding practical legal tips to help companies stay protect and seize opportunities. Industry is facing pressure on pricing to expand access to crucial therapies in both developed and developing markets. Increasingly, regulators and legislators measure success not only by clinical breakthroughs, but also by how many patients end up receiving treatment. Regulators and legislators have begun to examine how pricing correlates with the cost of R & D, and the value that treatment delivers. The UK Competition and Markets Authority's recent 90 million fine for excessive and unfair pricing is an example of this increased scrutiny. Such pressure has led to streamlined drug development and flexible pricing models link, for example, to the ability to pay. Regulators are adopting conditional Approval mechanisms, which revisit therapeutic efficacy to ensure that drugs deliver bang for buck before they are granted long - term marketing authorisation and / or purchase commitment. Some tips: Review existing pricing arrangements under contracts with buyers to ensure they are set fairly admittedly complex question. Review proposed conditional Approval agreements to confirm that they are as favourable as possible. Confidentiality may be key, in which case, consider including in agreements arbitration clause, rather than court litigation clause, to resolve disputes. Innovation remains a hallmark of this industry, but unmet medical need is still high both in common and rare diseases. M &, licensing, and joint venture arrangements remain central modes of acquiring and commercialising innovations. Divestments from big pharma will continue, following significant M & activity over the last three years. These are joined by alternative ways of risk - sharing, such as swapping of sellers ' mid - stage clinical assets for equity in buyers who will develop compounds. Some tips: Ensure intellectual property protection, particularly ahead of the game - changing European unified Patent System. Monitor success or achievement of any royalty or milestone targets, and compliance with covenants and representations made at time of purchase. In joint ventures, audit contract documents to retain control and visibility in key areas: IP, information sharing to ensure oversight, Clinical Trial integrity, anti - bribery, and Competition law compliance, to name a few. Big Data and digitalisation are revolutionising industry, and Real World Evidence will benefit R & D, Clinical trials, risk and effectiveness assessments, and patient outcomes. There is a trend from data owning to data sharing, and analysis of increasingly complex data sets with the use of artificial intelligence. To this end, industry will increasingly partner with the technology sector through M & and joint ventures. Some tips: Check that collection, storage, and analysis complies with Data Protection regimes, such as EU General Data Protection Regulation 2016 / 679. Cyber attacks are now daily news, and could compromise the integrity and confidentiality of data hold. Audit big data pathways from generation to harvesting, storage, and use to ensure data is secure. For M & and partnerships between industry and the technology sector, see tips above.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Uses of Cash

Like the majority of companies under our review, biotech firms must determine the best use of cash source from operations, as well as from equity and debt issues. First and foremost, goal is to achieve out - sized growth, and management work to ensure fully fund research and development budgets. Substantial capital is also spent on gaining approval of new drugs and bringing them to full production. Marketing and distribution require sizablel funds, as well. Acquisitions are more common among large industry players, which, at times, seek to bolster their lineups. In descending order, debt retirements, stock repurchases, and dividends are the least desirable uses of cash. The nature of the operations of firms in the Biotech Industry makes these equities more suited to aggressive, risk - tolerant investors. Stock prices here can fluctuate dramatically, particularly in response to news developments concerning success or failure of a particular drug. Investors must carefully consider stock's risk / reward relationship. Often, investors must be patient and willing to endure years of losses before the benefits of drug pipeline, in the form of long - term share - price appreciation, are realize.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Differences Between Biotech and Pharmaceuticals

If youre new to biotech, you might wonder what the difference is between the biotechnology industry and the pharmaceutical industry. Both industries produce medicine, so it is natural that they would become intertwine in most people's minds. Two get even further confused when you consider the term biopharma, which describes companies that use a combination of biotechnology and pharmaceuticals. Both the biotechnology and the pharmaceutical industries are known for researching and developing new drugs. Both industries have been around for hundreds of years, although modern biotechnology is much more recent. The two have some key differences, however. Here are the main differences between Biotech and Pharma: Biotech companies, by definition, use processes of living organisms in their work. Biotech companies produce all kinds of products, but most focus on medicine and agriculture. Alcohol, plastic, washing detergents, and cosmetics are all produced using biotechnology. Some well - known biotechnology companies include Celgene Corp., Amgen Inc., Gilead Sciences, and Biogen Inc. Most biotech companies are on the smaller side. On the other hand, pharmaceutical industry uses artificial sources to create new medicines. They test their products through empirical screenings rather than genetic engineering. Major pharmaceutical companies include Johnson & Johnson, Novartis and Roche, and Bayer AG. Pharmaceutical companies are generally larger businesses. They are usually funded by shareholders and provide a lower risk business model. As you can see, these two industries differ not only in how they research and develop products, but also in their business models. Biotech companies generally rely on fundraising. As a result, entire process of coming up with new ideas for development, marketing, and sales of new products is completely different. It is necessary to sell your ideas before obtaining funding for any project. As a result, some well - merit biotechnology projects go unfunded. This is rare in the pharmaceutical industry. The term biopharma refers to big pharmaceutical companies that utilize biotechnology. So, while Biotech and Pharma are very different, they do overlap at times. If you were confused about the difference between biotechnology and pharmaceuticals, hopefully, you now have some clarity! Check my blog for more articles about biotechnology.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

The biotechnology industry

A few notable market players operating in the biotechnology market include Abbott Laboratories, Agilent Technologies, Amgen, Bio - Rad Laboratories, Danaher, F. Hoffmann - La Roche, Illumina, Merck, PerkinElmer, Qiagen and Thermo Fisher Scientific. These industry players implement strategic market initiatives such as mergers, new product launches and acquisitions to uphold their position in the market and strengthen their product offerings. In May 2018, Illumina announced the acquisition of Edico Genome, provider of data analysis, speeding up solutions for next - generation sequencing. This acquisition enables the company to reduce result time as well as data footprint. In March 2018, Danaher Corporation entered final agreement to acquire Integrated DNA Technologies, Inc. Idt is a privately held provider of consumables used for genomics applications in qPCR, gene editing, molecular diagnostics, molecular Biology, synthetic Biology and next generation sequencing. This acquisition helps the company to broaden its existing product portfolio and garner more revenue. The Biotechnology market research report includes in - depth coverage of industry with estimates & forecasts in terms of revenue in USD from 2014 to 2025, for the following segments: biopharmacy Bioservices Bioagriculture, Bioindustries Bioinformatics fermentation Tissue engineering and regeneration PCR Technology Nanobiotechnology Chromatography DNA sequencing Cell base assay Others above information is provide for following regions and countries: north America US Canada Europe Germany UK France Italy Spain Russia Asia Pacific China Japan India South Korea Latin America Brazil Mexico Argentina Middle East Asia & Africa Saudi Arabia South Africa UAE

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Main Activities

This month, Jim Damicis and Alex Tranmer of Camoin Associates explore human health subsectors of the Biotechnology Industry and show how this competitive and fast - changing field can drive innovation - lead Economic Development in communities and regions throughout the US. The Biotechnology Industry in the US generates 111. 2 billion in annual revenue in 2015 with growth projected for the upcoming four years. One of greatest factors in the future of industry is its relationship to the US health Care system, which has recently undergone notable changes due to the passing of the Affordable Care Act in 2012, producing Ripple Effects throughout the Biotechnology field. Read on to learn more about current trends in different subsectors, emerging markets, and how economic developers can incorporate biotechnology into their work. This article was originally published in the May 2016 issue of Expansion Solutions Magazine. Biotechnology industries cover a wide array of activities, ranging from biofuel production to Medical Device Manufacturing. Battelle, leading science and technology Development institute, acknowledges that defining the biotechnology field is difficult due to the breadth of subjects that IT cover. They use the following subcategories to breakdown industry 1: Agricultural feedstock and chemicals BIO - science Related Distribution Drugs and Pharmaceuticals Medical devices and Equipment Research, Testing, and Medical Laboratories. In consideration of keeping this article focus on closely related industries, we will exclude the Agricultural feedstock and chemicals subsectors. Remaining subsectors are comprised of activities that use technology and advance manufacturing to improve human health. The Human health Technologies segment of Biotechnology makes up the largest share of industry products and services according to IBISWorld, nearly 69%. 2 based on our definition, biotechnology industries made up about 1% of all jobs in the US in 2015. In terms of percentage of jobs add, Biotechnology Industry, which grew 11%, performed better than the economy as a whole, which grew 5%, over the last decade. Battelle reports that industry variety helps IT remain steady during recession, allowing IT to avoid any catastrophic job losses. 3 looking at historic job performance of subsectors in Industry, three experienced loss over the last decade: Pharmaceutical Preparation Manufacturing, Ophthalmic Goods Manufacturing, and Dental Laboratories. Pharmaceutical Preparation Manufacturing still employs the greatest number of people, even though over 16 000 jobs were shed over 2005 - 2015. The next largest subsectors by employment in 2015 were Medical Laboratories and Medical, Dental and Hospital Equipment and Supplies Merchant Wholesalers. Biotechnology jobs tend to be high - paying jobs. Wages in the biotechnology industries had average annual earnings of 110 450 compared to 60 000 for all industries. Highest earnings are garnered in Research & Development in the Biotechnology field, followed by Pharmaceutical Preparation Manufacturing. In looking at the top ten occupations associated with Biotechnology subsectors, nearly all ten added Jobs, exclusive of Dental Laboratory Technicians and Packaging and Filling Machine Operators and Tenders, which saw minor losses.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Similar Industries

To combat increasing regulatory demands and the rise of generics and biosimilars, biotechnology and biopharmaceutical companies are being forced to constantly restructure. Big companies like Pfizer and Parexelare restructuring to foster a more collaborative approach internally, rather than building robust and specialized departments internally. Many large biotechnology and biopharmaceutical companies are collaborating with Contract Research Organizations and Contract Manufacturing Organizations. Pfizer's collaboration with both PPD and Parexel is a prime example of this kind of pharma - CRO / CMO strategic partnership. The Global Biotechnology Market Research Report by IBISWorld describes how many biopharmaceutical organizations are restructuring to take advantage of growing R & D capabilities of emerging economies in countries like China and India. Additionally, these biopharmaceutical organizations are restructuring to foster collaborations with small startups and academic research labs. This desire to collaborate with startups and academic labs has indirectly facilitated the growth of industry clusters, or global innovation hotspots such as San Francisco and Boston. A report in Drug Discovery Today, shows that over the past 10 years, large biotechnology and biopharmaceutical companies have gone through multiple restructurings, mergers, and acquisitions. It predicted that this trend of focusing on novel technologies and inclination towards collaborations and restructurings will continue. The future is sure to include more consolidation and restructuring among big players in biotechnology and biopharmaceutical sectors. These players will continue to combat patent expiration and rising expenditures, likely resulting in more restructurings and more corporation - CRO, corporation - startup, and industry - academia partnerships. As such, it is essential that you set aside time during your job search to stay up - to - date with the latest industry trends. You can do this by subscribing to industry journals, magazines, newspapers, associations, and even social media updates. By increasing your knowledge base of industry trends, you will further increase your value to industry hiring managers and recruiters. To learn more about transitioning into Industry, including instant access to our exclusive training videos, case studies, Industry insider documents, transition plan, and private online network, get on the wait list for Cheeky Scientist Association.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

The Technology

Biotechnology is the backbone of various industrial sectors and makes a significant contribution to the modernization of a country. Its broad range of high - tech applications is increasingly playing a role in enhancing market competitiveness, raising economic growth and improving the welfare of citizens. Biotechnology has become the driving force of radical changes in innovation processes in various sectors. Healthcare productivity has reduced traveling and waiting time, and provides digital diagnostic tools that facilitate physical examinations from a distance. New funding models enable payers to give commissions for outcomes for defined patient population, from vertically integrated accountable care organizations in every health economy. Digital parenting and other advancements in technology in Biotech have also brought significant changes and innovations in the sector. Here are some of the top ten trends in biotechnology that the world should expect to see in 2020. Building on regulatory frameworks from the 2000s, new regulations now encourage innovation through the convergence of science and technology. Pre - eminent regulatory agencies around the world have adapted to new realities as disruptive technologies challenge traditional methods and processes used to assess quality, safety and efficacy of prescribed medicines. Biotechnology is a field where technology advances rapidly but returns on investments may be slow. For this reason, public research organizations and enterprises need to protect innovation that they generate with intellectual property rights, which provide the basis for return on investment in research and development, by granting monopoly rights for certain periods to their owners. Also Read: 5 Ways Through Which Biotech Entrepreneurs are Going to Enhance Human Lives Successful value - base pricing arrangement is incumbent upon clear definition of when medication work, and when it does not work. There exists a consensus programme of data collection, typically initiated early in the commercial lifecycle. Value is relative to some alternative;s incremental value over other treatment options is the basis for higher price. Price must be linked explicitly by formula to the value metric of this programme of data collection. A clear payment or reimbursement mechanism is require. Under value - base pricing agreements, payers and pharmaceutical companies agree to link payment for medicine to value achieve, rather than volume. For pharmaceutical companies, these trends represent a paradigm shift in the structure of the market and call for innovative approaches to commercialization and pricing. In the new value - drive health care system, pharmaceutical companies will need to provide medicines that demonstrate real and measurable value to stakeholders. As a result, value - base pricingthe alignment of incentives between purchasers and manufacturersis getting increased attention. Value - base pricing offers pharmaceutical companies the ability to substantiate product value propositions. Agreements could provide far greater transparency to contribution of pharmaceuticals to value - outcome of consumer, and distribute risk differences between payer and pharmaceutical company. Pharmaceutical companies collaborate with stakeholders earlier in the research and development cycle and access best research and development for their research.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Biotech Startup Revolution

The startup paradigm for creation and funding of new biotech companies has evolved enormously over the past two decades. Recently there have been a pair of articles from Tech VCs about applying alternative models of company creation to the world of biotech, so I think it was worth reflecting on the prevailing venture formation landscape and offering up some counterpoints. Back in 2015, I shared my perspective on five changes to the biotech venture model since 2005 - and to a large extent, those same dynamics remain at work today. I 'll start with a quick review for context. When I first started in venture business fifteen years ago, founding biotech entrepreneurs would often prepare pitch decks and then shop them around to different VCs as part of a typical dog and pony show. Sometimes they were academic professors or post - docs, sometimes they were entrepreneurs leaving existing biopharma jobs to do startup thing. They often propose to build or lease standalone bricks - and - mortar lab, hire 15 - 20 scientists, and advance academic observation into bona fide drug discoveries during season round. Sometimes it would take 15M or more just to figure out whether initial academic insight was reproducible and generalizable as therapeutic approach. Often initial premise wouldnt survive these killer experiments, but because real capital had already been invested, these companies would frequently try to pivot to other programs or approaches. Sometimes, albeit rarely, these pivots work in biotech. But with fixed infrastructure and sunk cost, it was hard to just walk away. Returns suffer in this model. Our 2006 vintage prove - Build - Scale model of biotech investing emerged from this world and was an attempt to change the paradigm. During prove seed phase, aim was to demonstrate the scientific robustness of the founding concept as cheaply as possible. This model was largely enabled by emerging virtualization of ecosystem. Virtual drug discovery startups that leverage CROs and partners from around the world, assembling expertise on an as needed basis, became realistic operating models about a decade ago. With the rise of biotech wet - lab launchpads like LabCentral, hybrid models with both in - house labs and heavy virtual outsourcing have emerge, and are common feature today. For novel areas of biology, some internal lab footprint is often critical. Enabling technologies certainly helps create virtual infrastructure that powers up many biotech startups: computational drug design with partners like Schrodinger, in vitro safety screening, cheaper DNA sequencing and bioinformatics, lab automation, etc. Even virtual team management platforms like Slack for global remote project efficiency have help. Id also argue post - merger dismantling of Big Pharmas R & D footprints has had as much to do with the rise of virtualization as these enabling technologies: when large and small R & D sites around the world were shut down to reduce R & D footprints, many of these teams / facilities form into new specialty CROs or were absorb into existing ones. Europe and the Midwest have a huge number of ex - pharma sit that have become CROs.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Sources

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

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