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Modern biotech startups succeed by outsourcing non-core functions, such as medicinal chemistry, that have become commoditized. This lean approach allows them to focus capital and talent on their unique, best-in-class technology, enabling them to do more with less funding.
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.
To solve the critical challenge of hiring expensive, specialized talent, Curie.Bio offers its portfolio companies access to a 100+ person team of elite "drug makers" on a fractional, at-cost basis. This provides world-class expertise on demand without the burden of full-time payroll, de-risking early development.
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.
Actuate Therapeutics maintains high capital efficiency by keeping its full-time headcount low. The company is built around a trusted core team and supplemented by an extensive stable of "best of breed" consultants who are engaged on an as-needed basis, minimizing overhead costs.
Responding to Wall Street pressure to de-risk, large pharmaceutical firms cut internal early-stage research. This led to an exodus of talent and the rise of contract research organizations (CROs), creating an infrastructure that, like cloud computing for tech, lowered the barrier for new biotech startups.
For small biotechs, the playbook for success extends beyond scientific discovery. It requires creativity and innovation in the operational process itself—finding efficient paths through regulatory checkpoints, securing non-traditional funding, and leveraging external resources to advance development with limited capital.
Founders must distinguish between core competencies unique to their brand (e.g., product design) and commodity tasks (e.g., warehousing). Commodity functions should be outsourced to experts who benefit from economies of scale, freeing up internal resources to focus on what creates true differentiation.
Instead of building costly in-house GMP capabilities early on, a more effective strategy is to concentrate on the core preclinical science. By partnering with established CDMOs and consultants for the translation to GMP, startups can de-risk development and accelerate their timeline to an IND filing.
Ona Therapeutics maintains a small team by following a simple rule: outsource functions that external experts can do better (like CROs and manufacturing) at a reasonable price. This allows them to focus all internal resources on their core, specialized competency of designing novel molecules and advancing their pipeline.
To manage the long, costly timeline of therapeutic development, a biotech can create revenue-generating subsidiaries. One can offer its platform as a service (like a CDMO), while another sells lower-regulation products like cosmetic ingredients for faster market entry. This provides crucial cash flow to sustain the core drug pipeline.