New Biotech Companies

One of the hard hits of the recent economic recession has been the slow-down of private funding for biotechnology research and development. With a general haze of uncertainty hovering in the economic climate, comes an apprehensive attitude toward emergent industry. As consumers tighten their hold on limited resources, they adopt a wary approach toward what they view as unproven technology. And as the consumer goes, so also goes the venture capitalist. Consequently, sources of funding, especially for start-up and early-stage companies, have grown scarce in recent years.

Companies that persist in the face of this economic adversity have proven their creativity in avoiding the need for large amounts of capital. They have sought out standardized form licensing, with pre-established economic terms, to reduce the obstacles between technological discovery and the launch of research. Additionally, established biotech companies are beginning to partner with fledgling developers, licensing out a concept for development by the smaller company, which allows both companies to benefit from the resultant technology.

Finally, companies have focused on bringing prototypes of their technology only to the stage where it will attract the interest of large investors. This involves focusing efforts on the development of a specific, marketable product. The result of this focused development is exemplified in new biotech companies such as Allylix, a tiny firm in San Diego, CA that engineers fragrances at the molecular level to produce sought-after tastes and fragrances for beverages and perfumes at a fraction of the cost. The future will reveal companies, which will focus on treatments for cancer, infections, autoimmune diseases and new techniques in immunogen development.

Innovative solutions such as these are a benefit to the industry as a whole, as biotech companies set themselves to doing one thing well, rather than spreading their efforts unprofitably wide.