Bio-Business and the Commercialization of Bioscience - Essay Example

BIO-BUSINESS MODELS and EPISTEM AND INGENZA Biotechnology plays a fundamental role in the contemporary society. In particular, biotech companies continue to change people’s lives in diverse and dynamic ways. In the process, bioscience has increasingly become a key factor in today’s social and business environment. Pharmaceutical companies have also taken the biotech route to transform the delivery of health care services through progressive development of high quality health care products. As a result, biotechnology has become a revolutionary force in today’s society. The emergence, use, and commercialization of bioscience have seen the growth and development of many different companies. While some of these companies are large multinational operators, others are small or medium enterprises in terms of their operations. On the same note, these companies employ differentiated business models with an aim to become more and more competitive. This paper compares and contrasts the business models employed by EpiStem and Ingenza in their biotechnology-driven business operations. Ingenza’s biotech operations are based in the United Kingdom. However, the company’s operations extend beyond Europe to encompass a global spectrum in terms of business activities. Ingenza plays the role of a biotechnology provider (Gotor, Alfonso, & García-Urdiales, 2008). This means that the company works closely with other key players in the biotech industry. In its operations, Ingenza develops bioprocesses that primarily serve other biotechnology companies based on their clientele or customer needs (Patel, 2007). The key business here is to develop products whose demand rests with chemistry-driven enterprises. Relevancy of Ingenza’s role in biotechnology emanates from the company’s business model. Ingenza employs a business model that exhibits a shift from gene to white powders (Grogan, 2009). This move is informed by changing customer needs, prompting revolutionary responses in the chemicals market. This is exactly where the Ingenza comes in. The company is highly competent when it comes to enzyme-catalysed re-racemisation (Caprio & Williams, 2009). This makes Ingenza a top solutions developer for biotech businesses in the chemicals market. Moreover, the employed business model allows the company to pursue diversified solution ranges in line with influential customer needs. The gene-to-white business model is a core factor as far as biotech competition is concerned. The ability to integrate enzyme-catalysed re-racemisation into bioprocesses solves many different operational challenges for chemistry-driven business enterprises in the biotechnology industry. Notably, this model is special and unique to many biotech businesses. It allows the company to undertake effective and progressively improve its business-to-business operations. Even without directly targeting the consumer, Ingenza still meets diverse and dynamic customer needs though the development of bioprocess solutions for its clients. Ingenza’s business model has its advantages and disadvantages. Like any other biotech company, Ingenza serves highly diverse markets regionally and internationally. The gene-to-white business model is a key factor of competence for the company in the business environment. Relevance and supremacy of this model have seen the company merge or work with other companies with an aim to enhance business portfolio. Such a move is holds enormous business prospects, especially with regard to the fact that the business model is critically influential in that process. The shift from gene to white has its some limitations as well. This move prompts the company to pursue business strategies that are only relevant to the model. Employing strategies that do not conform to the model would result in business failure and the likelihood for a shutdown heightens. However, Ingenza’s counterparts could address this disadvantage. Companies that form the enhanced business portfolio with Ingenza could come to its rescue in the event of a failed business model. Critical to note is that the situation would still be dire if these companies observe independent budgeting and operational practices. The growth and development of Ingenza is highly influenced by research and development projects. Even with high industry competence, source of project funding is critical. Given the nature of its work, Ingenza is heavily reliant on collaborative research and development activities (Whittall & Sutton, 2012). In light of the outlined business model, the company’s business could be at stake in the event of collapsed collaborative efforts. Reliance on collaboration poses operational, business, and sustainability threats to the company. Ingenza’s business model, therefore, cannot sustain a primarily independent enterprise when it comes to research and development. This is because this model factors in the role played by other parties in the collaborative research and development deals, projects, or operations. On its part, EpiStem is a large biotech player in the global setting. The operations undertaken by the company encompass a significantly larger scope compared to those undertaken by Ingenza. EpiStem is also a biotech company that executes its business activities from the United Kingdom. EpiStem primarily deals with epithelial cells, but the company also engages in a number of entrepreneurial ventures that place it the forefront of global pharmaceutical operations (Austin, 2008). EpiStem’s business line of focus encompasses disorders that gastrointestinal in nature, dermatology applications, as well as oncology (Keegan, 2009). Over and above these operations, EpiStem is an active player when it comes to contract research that involves preclinical services. These activities make the company one of the most diverse in terms of product and service provision across the globe. Its emphasis of research services further enhances the company’s revenue streams. Over and above product development, research, and charging fees on contract service, EpiStem has developed other business divisions such as biomarkers and novel therapies (IBP USA, 2009). In this respect, EpiStem operates on a combined business model. The idea is to diversify business and subsequently target numerous markets at the same time. In the process, the company manages its therapeutic candidates with the aim of advancing preclinical services to the highest levels of stage development. The business model employed by EpiStem is shown below: Source: IBP USA, 2009 Unlike Ingenza, EpiStem engages in many different activities in the biotech industry. EpiStem’s business model is also more diversified, thus making it possible for the company to pursue a number of business lines using the same model. EpiStem is at the core of all the activities that take place in the biotech industry. The company’s engagement with other key players aligns the business model with existing and emerging opportunities in the industry. One of the key successes of EpiStem’s business model is the interaction between the company and the pharmaceutical clients. Over and above being an actual pharmaceutical company, EpiStem serves other pharmaceutical businesses in the industry. The business model used, therefore, is accommodative and relevant to future business prospects. This model works within and across the different entrepreneurial activities undertaken by the company. There is a critical interaction between EpiStem and pharmaceutical clients, contract research service. The business model shows both outward and inward movement of interaction, an aspect that reflect more business benefits for the company. There is also the development of therapeutics. This business line is critical to EpiStem’s revenue streams. Over and above being a standalone venture, therapeutics constitute a key link to the entire biotech industry. The outcome of the model further reflects more effectiveness in terms of biomarkers development. In developing its business model, EpiStem has considered all avenues that are critical to its business. EpiStem’s business model also accounts for some other key features that enhance the company’s operations. The availability of information influences the functions and operations of any given company within and without the biotech industry (Hine & Kapeleris, 2006). According to the business model highlighted above, EpiStem enjoys a number of information streams. The first stream is on the product development side. This type of information is critical in understanding customer and consumer needs. The fact that EpiStem’s business model provides for that factor is fundamental. The second important type of information comes from the company’s interaction with the industry while developing biomarkers. This information is critical in examining, evaluating, and understanding industry trends while striving to enhance business productivity. In this respect, the company keeps at par with the unfolding events in every aspect that affects its products, services, or business performance. The model, therefore, promotes the combined interests of the company. EpiStem’s business model has a number of disadvantages. To start with, the model is aligned with numerous entrepreneurial activities. This would make it difficult for the company to undertake an abrupt change of business model if it was necessary to do so. Having a business model that maintains a collection of business lines is critical (Sutton, 2009). With a diverse and dynamic industry, it is extremely difficult to predict future trends. Although the business model works effectively for the company, it puts some ventures at stake due to myriad uncertainties associated with the future. What this means is that a negative impact on one business line is highly likely to extend to related business activities within and across the same model. In conclusion, business models play a fundamental role in the business operations undertaken by any given company. Ingenza and EpiStem employ two different business models that fundamental enhance their bioscience-driven business interests. Although the two companies operate on different business scales, the common denominator is that each of the two companies holds a success story that is essentially attributable to their respective business models. References Austin, M., 2008. Business Development for the Biotechnology and Pharmaceutical Industry, Farnham: Gower Publishing. Caprio, V. & Williams, J., 2009. Catalysis in Asymmetric Synthesis, London: John Wiley & Sons. Gotor, V., Alfonso, I., & García-Urdiales, E., 2008. Asymmetric Organic Synthesis with Enzymes, London: John Wiley & Sons. Grogan, G., 2009. Practical Biotransformations: A Beginners Guide, London: John Wiley & Sons. Hine, D. & Kapeleris, J., 2006. Innovation and Entrepreneurship in Biotechnology, an International Perspective: Concepts, Theories and Cases, London: Edward Elgar Publishing. IBP USA, 2009. UK Biotechnology Products Exporters Handbook, New York: Intl Business Publications. Keegan, K., 2009. Biotechnology Valuation: An Introductory Guide, London: John Wiley & Sons. Patel, R. N., 2010. Biocatalysis in the Pharmaceutical and Biotechnology Industries, London: CRC Press. Sutton, S. D., 2009. Biotechnology: Our Future as Human Beings and Citizens, Albany: SUNY Press. Whittall, J. & Sutton, P., 2012. Practical Methods for Biocatalysis and Biotransformations 2, London: John Wiley & Sons. Read More