Successfully Launching New Ventures - Essay Example

Quick-Med Technologies hold utility patents, which restricts the rights of their innovative technologies for infection prevention. They have recently acquired the patent entitled “Use of Compositions for Treating Rosacea”.

In determining this Patent which involves the methods for treating Rosacea (a chronic condition characterized by facial erythema) they considered the factors such as the Prevalence of Rosacea, as nearly 16 million Americans are suffering from Rosacea, Secondly they also considered the fact, that presently the treatments available today often create unwanted side effects.

Competing companies would be affected by this intellectual property of Quick-Med Technologies, as they can’t use this more effective technique and the current techniques have side effects so they are likely to face low sales of their products which are associated with the treatment of Rosacea.

Advanced Cell Technology, Inc is a biotechnology company that is specialized in the development of cellular therapies for the treatment of diseases.

Advanced Cell Technology, Inc has many Intellectual properties in the area of regenerative medicine. They have utility patents like methods for treating retinal degeneration using human RPE cells and manufacturing RPE cells from human ES cells.

Advanced Cell Technologies has acquired these patents because this is potentially a very large market, there are some 200 or more diseases of the retina which affect millions of people worldwide, and that may be treated by using their technology of RPE cells. Secondly, there are currently no available treatments for some diseases like Stargardt's Disease and Age-related Macular Degeneration, which can be treated with their new treatment technology, and which is potentially a 20-30 billion dollar market.

These new intellectual properties will extend the company's patent coverage of the scalable manufacturing of human RPE cells for therapeutic use, this Intellectual property will further expand their patent estate with respect to protecting the use of RPE cells in a wide range of treatments. As this is a multibillion-dollar market and there are currently no available cures for some of the diseases which can be treated with their treatment technology, they have a chance to earn billions of dollars profit from this Intellectual property. Competing companies are restricted with the use of this new technology so they would find them behind advanced technologies in this field of Health Care. Entrepreneurial firms must create barriers to entry in order to reduce the threat of new firms entering the market. For this purpose, Entrepreneurial firms sometimes have to adopt some nontraditional barriers to entry such as:

 Quality of Management team

 Unique Business Model

 First Mover Advantage

 If an entrepreneur puts together an excellent and unparallel management team it will delay the potentially competing companies in taking on the startup. An entrepreneur can create a unique business model and then establish a network that can benefit this unique business model, then will create a barrier to entry for others. If an entrepreneur starts a business with an absolutely new concept within the existing industry, the name recognition that the pioneer firm establishes will create a very strong barrier to entry for potential rivals to enter.

In the health care industry, the most effective barrier to entry could be the First Mover Advantage. Because when a health care company creates any new method in the treatment of a particular disease and acquires property rights then; it will severely affect the other competing companies. This is why there is always more need to invest in Research and Development, thus creating new markets and building competitive advantage along the way.