A recent meeting focused on “Reinventing Biotech’s Business Model” provided an interesting window into the spectrum of approaches being used to create new biotech companies. Unfortunately, it did little to relieve the concerns I recently voiced regarding the expanding numbers of “virtual” biotechs. This model is becoming a popular archetype for the creation of new biotech companies because they require much smaller initial capital investments than traditional biotechs. The basic idea is to build a company around a small managerial group who then farm out most of the basic operations to contract organizations. These outsourced functions usually include research and development, clinical trials, intellectual property, regulatory, financial, and even human resources.
To read the full, original article click on this link: Virtual Biotech Companies: Built on Solid Bedrock or Unstable Landfill? | Xconomy
