A New York City-based investment professional, Dr. Lindsay
Rosenwald co-heads an asset management hedge fund dedicated primarily to
the biotechnology sector. Over the course of his career, Dr. Lindsay
Rosenwald has played a role in developing drugs to treat prostate
cancer, influenza, and rheumatoid arthritis.
Although the work of biotechnology and pharmaceutical companies often overlaps, several major differences actually exist between the sectors. This article will discuss two such distinctions.
Firstly, biotechnology firms typically work with complex proteins, genetic material, and microorganisms. Rather than using chemical-based synthetic processes to develop small-molecule drugs, as pharmaceutical companies do, biotechnology firms focus their research on the discovery of novel compounds that can be applied to various therapies.
Secondly, biotechnology companies often operate at a loss during their extensive research and development phases; however, by taking this risk in R&D, they are often responsible for creating the most innovative drugs on the market. On the other hand, pharmaceutical companies generally invest more in marketing and sales, and can use the funds from current drugs on the market to subsidize new research or to license new drugs from organizations like biotechnology firms. Upon creating a successful drug or therapy, many biotechnology firms collaborate with larger pharmaceutical companies that have a marketing and sales infrastructure in place, licensing the drug to or even merging with the larger firm.
Although the work of biotechnology and pharmaceutical companies often overlaps, several major differences actually exist between the sectors. This article will discuss two such distinctions.
Firstly, biotechnology firms typically work with complex proteins, genetic material, and microorganisms. Rather than using chemical-based synthetic processes to develop small-molecule drugs, as pharmaceutical companies do, biotechnology firms focus their research on the discovery of novel compounds that can be applied to various therapies.
Secondly, biotechnology companies often operate at a loss during their extensive research and development phases; however, by taking this risk in R&D, they are often responsible for creating the most innovative drugs on the market. On the other hand, pharmaceutical companies generally invest more in marketing and sales, and can use the funds from current drugs on the market to subsidize new research or to license new drugs from organizations like biotechnology firms. Upon creating a successful drug or therapy, many biotechnology firms collaborate with larger pharmaceutical companies that have a marketing and sales infrastructure in place, licensing the drug to or even merging with the larger firm.
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