Biotech Incubator: Instrumental To Success Of Start-Up Companies

2008-06-04 12:17:00

( Financial )



It is not uncommon to see a number of biotech start-up firms that fail in their commercial ventures. It is in this backdrop that biotech incubators can help these companies in producing commercially feasible products that can result in improving the quality of life of the public. While biotech incubators used to be an unfamiliar route to be taken by start-up companies, many biotech companies are now considering biotech incubators seriously.

Biotech incubators used by businesses are usually situated near, or within the property of a university. The primary advantage of having this kind of set-up is that the young company can have access to laboratory space where its scientists can perform the research, while paying at a lesser price compared to building its own laboratory. In addition to biotech incubators, a biosafety instruction and services on biomedical waste are also available. These services can be too expensive, and young companies can hardly afford them if they will have to build their own.

Biotech incubators have proven to help reduce the costs, such as overhead and front-end, of young biotech companies. They offer the needed spaces for office and laboratory, and the required technology infrastructure to perform the research. The access to people who have expertise in biotechnology and the proximity of biotech executives can create valuable contributions to businesses.

Although a biotech incubator can be instrumental to the success of a start-up biotech business, it is not advisable to make it as its permanent home. This is akin to investing in biotech stocks, where you will have to sell them at some point in time and find other stocks which produce more profits. In biotech companies, once their products are well-received by the public, they will need to move out of biotech incubators and construct their own laboratory spaces.


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