Determining the best market strategy can go a long way for the profitability and commercialisation of your technology. The following are the most common ‘go to market strategies’ for biotechnology and medical device companies.
Licensing agreements are contractual arrangements that allow a licensee to use, manufacture or sell particular assets with permission from the contractual owner. The earliest licensing agreement in biotech was the licensing of Genentech’s first therapeutic, recombinant insulin, to Eli Lilly. Since then, licensing agreements have become commonplace in the industry. Licensing has been integral for smaller companies to gain access to resources, including specialist regulatory expertise or manufacturing and marketing capabilities, that larger pharmaceutical partners or medical device companies may possess. The essential component is to be able to adequately valuate the technology on offer, to ensure all value is captured. Learn more about licensing here.
A partnership is an association of people who carry on a business as partners who receive income jointly (ATO). The partners are all joint owners of a business and equally responsible for decisions made on behalf of the company. In other words, all profits, losses and responsibilities are equally shared, unless specified otherwise in a partnership agreement. Sharing a partnership with a medical institution for example, can foster medical device innovation providing access to patients during early stages of product development. Learn more about partnerships here.
‘If you can’t beat them, join them!’ Joint ventures are a form of strategic alliance where a temporary partnership is formed between two parties, seeking to leverage shared markets, IP, knowledge and, of course, expenses and revenue. The degree of ownership is dependent on the agreement. An example of a joint venture is the partnership formed between Unilever and lluminage. The relationship will leverage Unilever’s global expertise in development and marketing of beauty products, with the technical expertise of Syneron’s aesthetic devices. Learn more about joint ventures here.
From Facebook to Apple, these large innovative companies that we know today, all started as start-ups. Start-ups are small, newly created and in a phase of development seeking growth and entry into markets. The entire concept is considered quite risky as business outcomes are unknown and high amounts of resources and time is required of the founder. Medical or biotech entrepreneurs face the additional challenge of melding science with business with high expenditure in research & development. Running your own company requires great persistence, flexibility and hard work, but the end result is the ability to create a product that may benefit the health of countless individuals, and hopefully reap financial benefits as well. Specialist knowledge in capital raising is often crucial to get a start-up off the ground and through the early stages, this is where Inner Maven can assist. Learn more about start-ups here.
The lessor known spin-off or spinout company, is when the original parent company breaks off to form a new company. The primary reason for this is that companies may want to market a new product under a different name or divert attention to R&D projects that languish due to not fitting into current strategies of the parent. Packaging the project as a standalone entity creates a focus and may potentially grow the development of the technology. A biotechnology company for example, may spin out parts of its developmental pipeline into a separate company, snagging interest from venture capitalists and advancing the development of these products. Learn more about spin-offs here.
At Inner Maven, we have experienced all kinds of market strategies. Our consultants can assist you to identify the best market strategy and guide you through the process.