The complexity of bio-molecules development and biotechFirms: Can alliances help fill the voids?

Abstract

Biotechnology is very complex, mainly due to the high investments required and the uncertainty of the long and critical R&D for the bio-molecular product development. In addition, firms must endure the risks and extreme long time from discovery to final product. The development of new pharmaceutical bio-molecules needs more than ten years of research and around 800 to 1.3 billion U.S. dollars. This critical convergence is so intricate that the success of biotechnology firms is extremely harsh, and many of them disappear in the first years of their lives. A conceptual framework is developed that incorporates potentials benefits or inconvenient associated to the use of strategic alliances. The paper proposes to identify if strategic alliances could be a significant player coveted in order to acquire the resources and skills gaps. Thus, the paper sets out the extent to which  alliances could be an advantage for the acquisition of new dynamics capabilities and help to create value to these firms (or not). The goal is to discuss the complexity surrounding the creation and posterior development of biotechnology firms and evince the role that could play potential alliances on the development of these firms and of course elaboration of new bio-molecules. The success of biotechnology firms and bio-molecules will depend on several variables, not just one or two specifically. The creation of biotechnology firms does not seem to be very complicated in itself. However, that is complex, is how to make these organisations can be sustained over time. It seems that it is too complex to do so, starting with the very high costs associated with the development of bio-molecules, as well as the resources and skills necessary to achieve this. Finally, strategic alliances can come help fills this lack, without being a panacea, nor solve all the disadvantages and drawbacks associated.