shutterstock_311333621_flamingo_images
Flamingo Images / Shutterstock.com
22 December 2021Big PharmaChad Shear

A guide for life sciences entrepreneurs

The strength of a company’s IP is a central factor in determining its value, and perhaps nowhere is this more evident than in the life sciences industry. Because of the huge upfront expenditures required to develop products in the pharmaceutical, biotechnology, and other life sciences industries, a strong IP portfolio can be the difference between success and failure.

Life sciences entrepreneurs often face different IP challenges from those in other industries due to long product life cycles and expensive research and development (R&D), among other concerns.

Long product life cycles

The product life cycle for life sciences companies, particularly pharmaceutical companies, differs significantly from that in other sectors, and that difference affects both patent protection and investment strategies.

To illustrate, product life cycles in the tech sector tend to be short due to the short shelf life of most tech products, so patent protection on those innovations tends to be less important than it is in the life sciences sector.

Pharmaceutical products, on the other hand, have lengthy product life cycles, often requiring ten or more years of R&D before they launch, with shelf lives that can last decades. And even when a product enters the market, it generally takes about three years for the company to become profitable. A product that fails within its first three years can spell disaster.

Hefty upfront expenditures

Upfront R&D expenditures for pharmaceutical companies can be enormous, in some cases reaching up to $2 billion years before the product hits the shelves and the company sees even a dollar in return. The high upfront cost to develop a pharmaceutical product and the gap in time before its market entry raises the stakes for entrepreneurs and investors.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

article
18 July 2018   At Flagship Pioneering, Aram Adourian, partner, knowledge management, uses his skills to leverage internal and external knowledge and informatics across the breadth of the company’s research activities, as he tells LSIPR.

More on this story

article
18 July 2018   At Flagship Pioneering, Aram Adourian, partner, knowledge management, uses his skills to leverage internal and external knowledge and informatics across the breadth of the company’s research activities, as he tells LSIPR.

More on this story

article
18 July 2018   At Flagship Pioneering, Aram Adourian, partner, knowledge management, uses his skills to leverage internal and external knowledge and informatics across the breadth of the company’s research activities, as he tells LSIPR.