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2
Feb
2015
Implications of the Biotech Boom on the Business and Science of R&D
[Editor’s Note: This post was written by Richard Pops]
It is exciting to see the remarkable influx of capital into the biopharmaceutical industry over the past couple of years. More than just refilling depleted coffers, strategic investors are putting more money to work in excellent companies after a long period of relative scarcity.
Capital can favorably change the risk profile of a biopharmaceutical company through its effective deployment in two dimensions. The first and most commonly considered, is breadth. With additional resources, companies can increase the number of research programs and drug candidates in development. That’s important in an industry where so many drug candidates fail.
The second thing additional capital allows is greater depth in R&D.


