Overview• Industry Overview• Impacted Industries• Science• Business Issues• Examples• Where do you fit?• Getting Involved• Websites• Other Resources

Statistics

Impact of Biotechnology

Nutrition

Human Health

CropProduction

Industrial Products

Slide courtesy of Dick Kouri

The Business of BiotechnologyIndustrialApplications•Enzymes•Chemicals•Fiber•Fermentation

CropProduction•Seeds •Chemicals•Fertilizers•Outputs

Nutrition•Food•Animal feeds

Databases•Pharmaceuticals •Agriculture•Other

$0.5 B$135 B$500 B$800 B

High BarriersLow Margins

High BarriersLow Margins

Low-High BarriersLow-Med Margins

Low BarriersHigh Margins

HumanHealth•Pharmaceutical •Nutraceuticals•Botanicals•Additives

$450 B

Low-High BarriersMed-High Margins

Slide courtesy of Dick Kouri

• $500 billion market• New products: additives,

botanicals, foods, and health foods that will improve nutrition

• Food Companies - $300B in Sales for the Top 30 Companies

• Additives - $4-8 B (Dominated by Roche)

• Growing Markets– Health Foods - $100 B– Botanicals – $0.5 B

Nutrition

Slide courtesy of Dick Kouri

Crop Production• $786 billion market• New products: herbicides,

fungicides, fertilizers, seeds, and crop outputs that are high value and environmentally friendly

• Major Players– Monsanto– Bayer (Office in RTP)– Novartis– Syngenta

• Local Companies– Paradigm Genetics– Crop Solutions Slide courtesy of Dick Kouri

Industrial Products

• $135 billion market• New products:

fibers, industrial enzymes, specialty chemicals, paper and pulp for new and improved processes

Human Health• $400 billion market• New products:

antibiotics, diagnostics, vaccines, nutraceuticals, and pharmaceuticals for disease prevention and treatment

• Major Players: All Big Pharma• Local Companies

– See NC Biotech website

Science

• Basics– Cell– DNA-RNA-protein

• Applications– Genomics

• Gene Therapies

– Proteomics• Activating process

– Monoclonal Antibodies

Business Issues

• Time and funding• Small molecules vs. molecule and

problems– Pills vs. Injection

• Manufacturing– Complicated – can’t make enough

Examples

• Top drugs– Amgen

• Small Companies– AlphaVax

Where do MBAs fit in?• Business Development

– Business Plan Writing– Licensing and Partnerships

• Marketing and Sales– Big Pharma– Marketing Strategy -> Developing Partnerships– Market Research

• Market Sizing• Competitive Intelligence

– Sales Rotations

• Finance– Investor relations– Funding strategies for start-ups– Corporate finance for larger firms

How to Get Involved

• CED – www.cednc.org– Volunteer for events through e-club– Biotech Forum – 2nd Monday

• Biotech Club Events• VCIC Competition• Entrepreneurship Club Speaker

Series

Websites

• Biotech Club website– List of applicable sites

• NC Biotech Center– www.ncbiotech.org

Other Resources• Brookings Institution Report

– www.brook.edu/dybdocroot/es/urban/publications/biotech.pdf

• PHRMA Report on New Medicine Development for Biotech– www.phrma.org/newmedicines/resources/2002-10-21.93.p

df

• S&P 500 Industry Overview – OCS Library• From Alchemy to IPO – The Business of Biotechnology

by Cynthia Robbins-Roth• The Million Dollar Molecule by