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A company's development approach is dictated by its business model. Startups use simple, low-cost methods for quick proof-of-concept data. Large pharma invests in robust, high-throughput systems to de-risk processes for regulatory demands. CDMOs must be flexible to serve both.
Unlike small-molecule drugs, biologics manufacturing cannot be simply scaled up on demand because "the process is the product." A superior manufacturing and supply chain capability is not a back-office function but a key market differentiator that commercial teams must leverage to win customers and outpace competitors.
Counter to the lean biotech model, Vivtex avoids outsourcing to CROs. The rationale is that only an internal team, whose survival depends on the technology's success, possesses the existential urgency to solve problems at the breakneck pace required—a speed external partners cannot match.
For early-stage biotech companies, saving money by limiting initial drug substance characterization is a false economy. A comprehensive, state-of-the-art characterization before Phase 1 is essential to de-risk the program by identifying molecular issues before they become catastrophic problems in late-stage development.
A significant portion of biotech's high costs stems from its "artisanal" nature, where each company develops bespoke digital workflows and data structures. This inefficiency arises because startups are often structured for acquisition after a single clinical success, not for long-term, scalable operations.
The belief that bioprocess development must take a long time becomes a self-fulfilling prophecy. Professor Waranyoo Phoolcharoen argues that integrating manufacturing, scalability, and downstream constraints from day one can significantly shorten timelines, challenging the industry's traditional, sluggish mindset.
Biotech companies create more value by focusing on de-risking molecules for clinical success, not engineering them from scratch. Specialized platforms can create molecules faster and more reliably, allowing developers to focus their core competency on advancing de-risked assets through the pipeline.
Transitioning a biotech from discovery to development is not just a scientific step but a cultural one. According to Ron Cooper, it requires moving from a flexible "innovation and ideation culture" to a rigorous "engineering culture" focused on process and precision in areas like clinical trials and large-scale manufacturing.
Vivtex avoids outsourcing critical R&D because external partners and CROs cannot match the speed of a startup team whose very existence depends on solving problems quickly. This internal urgency is a core competitive advantage that is lost when relying on third parties with different priorities.
Unlike most biotechs that start with researchers, CRISPR prioritized hiring manufacturing and process development experts early. This 'backwards' approach was crucial for solving the challenge of scaling cell editing from lab to GMP, which they identified as a primary risk.
According to Novartis's CEO, a top reason for rejecting potential biotech partners is their underinvestment in Chemistry, Manufacturing, and Controls (CMC). Startups often neglect this unglamorous work, leading to deal failure because the acquirer can't be sure the drug can be scaled efficiently and safely.