U.S. Biotech Industry Note

Description

U.S. Biotech Industry Note: Abstract

Two elements have differentiated the « biotech industry » from traditional industries: The first is the need for access to large amounts of capital, long in advance of having a « product » that a « customer » could buy; and the second is the requirement to meet stringent government regulatory controls. Strategy in a typical « biotech » company is determined by the capital markets rather than driven by customers. In the period 1990-2003, capital markets supplied over $100 billion to biotech firms.

The note includes:

• Background on the biotech industry and a brief industry fact summary (focus-healthcare)
• A « layman’s language » note on the science that created biotech
• The role of information technology (bioinformatics) in its development
• Tthe role of government as regulator and grantor of intellectual property rights
• Capital markets and trends shaping the industry
• The industry’s main business models
• A brief discussion of some underlying ethical dilemmas

Additional information

Teaching notes are available for teachers only. Contact the HEC Montréal Case Centre for more information.