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A difference between drug discovery and technology is that in the case of drug discovery product-market fit is not as much of an unknown. If your drug works, t
by hardtke 6y ago
A difference between drug discovery and technology is that in the case of drug discovery product-market fit is not as much of an unknown. If your drug works, there will be a market, it is pretty easy to estimate the size of the market, and you have market exclusivity for a period of time. In the case of technology, you need for both the product to work and for the market to materialize.
- akiselev 6y agoHow many tech companies have IPOd without product market fit? Their main problem seems to be reigning in the unrealistic growth they've been chasing. Billion dollar biotech companies can evaporate almost overnight, especially during a fiscal crisis. All it takes is a clinical trial gone wrong (or a competitor's gone right) and most will not be able to find enough capital to keep going. Without revenue, their survival depends entirely on the FDA and investors. It's a binary result without many options like downsizing, hunkering down, renegotiating debt, or seeking a bailout except a massive down round acquisition (or government intervention).