Entrepreneurship in Biotechnology

Research and development of novel medicines for human therapy commonly takes over a decade before significant revenues from sales are forthcoming. How can biotechnology companies be founded and grow successfully in an industry with such extended innovation processes? The book investigates this problem and distinguishes three growth phases: From incorporation and start-up through collaborative R&D with large pharmaceutical firms to value creation from R&D pipelines to Public Offerings and product marketing. In this book a dynamic simulation model for testing different decision-making strategies is developed. For each phase the author identifies decision rules that provide for successful corporate growth.

Includes supplementary material: sn.pub/extras

Inhalt
1 Independent Biopharmaceutical Companies and Their Specialization in Drug Discovery Technologies.- 1.1 Drug Discovery in Research and Development Pipelines.- 1.2 Growth Problems Generated by R&D Duration.- 1.3 Consequences of Human Genetic Research on Drug Discovery.- 2 Model Structure for High-Technology Firms and Its Dynamic Behavior in Start-Up Phases.- 2. 1 Macro Structure for Entrepreneurial Management of Start-Ups.- 2.2 Micro Structure that Determines High-Technology Performance.- 2.3 Dynamic Behavior from Start-Up Model Experiments.- 3 Model Structure and Dynamic Behavior for High-Technology Firms in Transition to Growth Phases.- 3. 1 Macro Structure for Contract Research.- 3.2 Micro Structure for Contract Research on Novel Disease Targets.- 3.3 Dynamic Behavior from Transition Model Experiments.- 4 Economic Value Creation in Transition Phases: Access to Equity Capital.- 4. 1 Value Creation from Drug Candidates in Collaborative R&D Pipelines.- 4.2 Simulation of Value Creation.-4.3 Equity Financing for Growth Phases.- 5 Strategies for Growth Phases to Sustain Independence.- Appendix 1: Parameter List for Start-Up Model.- Appendix 2: List of Equations for Start-Up Model.- Appendix 3: Parameter List for Transition Model.- Appendix 4: A Dynamic Theory on Cost of Capital for Biotechnology Firms.