A Biotech Manager's Handbook

6

Exploring funding routes for therapeutics firms

Michael M. Hopkins

Abstract.

Therapeutics can be developed in firms based on a wide range of business models, from those that finance their R&D from their own revenues to those that must raise external investment to ensure their survival. As sophisticated investors have become interested in therapeutic innovation, the latter business model has become much more common than the former, even when the investee firm is unlikely to generate any revenues during its lifetime. The highly unusual and capital-intensive demands of therapeutics firms have been addressed through funding strategies drawing on many different channels, from government grants, to business angels, junior and main stock markets, ...