Feb 22
With scarce funding, is Biotech adopting a new support strategy?
A reflective summary by Karen Fischer for BioSpace, quoting an example from NeoBiotechnologies CEO Atul Tandon advocates for a lean format, emphasizing increased employee autonomy and responsibilities for positive outcomes like better retention and Portal Innovations, LLC Innovations introduces fractional C-suite: The model connects part-time executive candidates with biotechs based on their needs, offering flexibility and cost savings of 25-40%.
Reasons behind fractional engagements:
🌐 Biotech funding challenges: Funding is scarce in the biotech industry, prompting companies to adopt new strategies.
💰 Lean C-suites on the rise: Companies are favoring lean C-suites for cost-saving advantages amid the current funding climate.
💡 Capital redirection: Savings from avoiding C-suite expansion are redirected into intellectual property (IP) efforts, such as developing antibodies for cancer research.
🎯 Focus on critical tasks: Fractional C-suite model allows biotechs to concentrate on essential tasks like gathering preclinical or human data for investment rounds.
⌛ Trial period for executives: Working part-time provides a trial period for both the company and the executive before transitioning to a full-time role.
📊 Investor expectations are shifting: Investors value data-driven decisions, leading to a long-term expectation for companies to demonstrate progress before substantial investments.
🔄 Adaptation to financial constraints: The biotech industry is adapting by emphasizing resource efficiency and strategic decision-making to navigate the challenging funding landscape.