Thank you for Subscribing to Life Science Review Weekly Brief
The average time it takes to develop a treatment, gain regulatory approval, and bring a product to market is 15 years, which means companies often invest more than a decade in a product before seeing a return.
FREMONT, CA: The COVID-19 pandemic highlighted the importance of innovative medical treatments, resulting in new research, product approval, and financing opportunities. However, keeping expenditures under control and maximizing budget efficiency is a never-ending problem. As more rivals enter the industry, the necessity of hiring and maintaining top staff grows, and companies must stay on top of ever-changing drug compliance rules. Here are three challenges facing biotech companies:
Regulatory agencies revised guidelines in 2020 to help biotech businesses performing COVID-19 vaccine research. The revised guidelines reduced the enormous compliance burden faced by biotech companies, but companies are skeptical that the user-friendly modifications will stick.
In Europe, biotech and life sciences companies have their own set of compliance issues. While the European Union established the General Data Protection Regulation (GDPR) to simplify compliance rules, businesses must still juggle competing obligations from multiple organizations and governments.
It is costly to fund research to combat health risks such as COVID-19, cancer, and Alzheimer's. For a medicine, companies can spend up to one billion dollars on research and development. The average time it takes to develop a treatment, gain regulatory approval, and bring a product to market is 15 years, which means companies often invest more than a decade in a product before seeing a return.
Procurement of crucial medicine components is delayed as global supply chains continue to be hindered by the pandemic, lengthening the entire process.
It comes as no surprise that the a large number of biotech and life science companies consider cost containment as a significant hurdle in the face of high internal costs and a protracted process before producing income.
While the epidemic boosted demand for biotech's cutting-edge medical solutions, it also worsened a long-standing problem for companies: attracting and retaining top people. Because of the skills scarcity, biotech HR departments must devote a significant amount of time and resources to recruiting new employees. HR teams are under tremendous pressure to retain every workforce member due to the lengthy and resource-intensive recruitment process.
Companies lose productivity when employees leave, and HR departments must repeat the entire recruitment and onboarding process. Turnover costs are well-documented, with figures ranging from 33 percent of an employee's compensation to a whopping 213 percent for highly educated executive jobs. While the actual cost of losing and replacing important individuals varies, one thing is certain: biotech businesses that are already functioning on tight budgets cannot afford to lose more employees.