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It makes sense that biotech startups are pre-revenue: it is illegal to charge money for a drug until it's gone through FDA clearance. That usually requires a Ph
by brandonb 7y ago
It makes sense that biotech startups are pre-revenue: it is illegal to charge money for a drug until it's gone through FDA clearance. That usually requires a Phase III clinical trial.
After FDA, you're not done: the company must then convince doctors to prescribe the drug, and health insurance to cover it.
All takes years, and requires investment. The estimate is that it now costs $1B+ to develop a new drug and bring it to market.
- akiselev 7y agoOh absolutely. Usually they're at least past phase 1 trials so at least investors know that the FDA has at least spoken to the safety. I've worked in startups in both fields so it's just fun to watch software people salivate over the impact of biotech while the biotech people salivate over the easy money and sky high valuations of software.
- luckydata 7y agoThat seems the problem in itself. We should, as a society, figure out how to do that more cheaply and without the incentive of profit. Too much chance of someone telling a bunch of lies or misrepresenting in order to make a buck.