Strategies Author: Karen Young Kreeger
Amid a year of continuing hostile capital markets and product failures, biotech executives are retrenching, planning, and implementing scaled-down business plans they hope will sustain their industry into the next century. Their primary strategy to endure is to adopt tactics that are less reliant on public financing and the drug-approval process, according to the 10th annual Ernst and Young report on the state of the industry.
More and more, these plans involve biotech-pharmaceutical alliances as well as a variety of alternative tactics that includes selling services and information or enhancing existing products rather than developing new ones.
The report, entitled "Biotech '96: Pursuing Sustainability," and published by the San Francisco-based accounting and management-consulting firm, was introduced last month at the Biotechnology Industry Organization's fall meeting in Washington, D.C.
Gary Snable, CEO of Layton Bioscience in Atherton, Calif., says the...