Biotech start-ups are a bulky affair. They require monstrous amounts of money and resources to start with, take years to do the research and development for the product and the profits, if any, fall down rapidly once patents expire and generic versions of the product fill the market. For platform start-ups, the technology often gets outdated before it becomes profitable. Thus, biotech start-ups make good products but, not good businesses.
Fortunately, the scenario is changing with the costs of starting up a biotech company plunging to the order of the costs of starting a software company. Continue reading