Three Problems Faced By Biotech Companies

The average time it seizes to develop a treatment, gain regulatory approval, and bring a product to market is 15 years; companies often invest more than a decade in a product before seeing a return.

FREMONT, CA: The COVID-19 pandemic emphasized the importance of innovative medical treatments, resulting in new research, product approval, and financing opportunities. Nevertheless, keeping expenditures under control and increasing budget efficiency is a never-ending problem. As more rivals enter the industry, the requirement of hiring and maintaining top staff grows, and companies must stay on top of inconstant drug compliance rules.

Here are three problems facing biotech companies:

Regulatory Standards

Regulatory agencies amended guidelines in 2020 to help biotech businesses perform COVID-19 vaccine research. The revised guidelines lowered the huge compliance burden faced by biotech companies, but companies are skeptical that the user-friendly modifications will stick.

Biotech and life sciences companies in Europe have compliance issues. While the European Union started the General Data Protection Regulation (GDPR) to clarify compliance rules, businesses must still juggle competing obligations from several organizations and governments.

Maximizing Cost-Effectiveness

Funding research to combat health risks such as COVID-19, cancer, and Alzheimer's is costly. For medicine, companies can spend up to one billion dollars on research and development.

The average time it seizes to develop a treatment, gain regulatory approval, and bring a product to market is 15 years; companies often invest more than a decade in a product before seeing a return.

Procurement of critical medicine components is delayed as global supply chains remain hindered by the pandemic, lengthening the entire process.

It is no surprise that many biotech and life science companies consider cost containment a major hurdle because of high internal costs and a lengthy process before making income.

Skill Shortage

While the epidemic expanded demand for biotech's cutting-edge medical solutions, it also worsened a long-standing problem for companies: attracting and retaining top people. Due to the skills scarcity, biotech HR departments must devote a significant amount of time and resources to hiring new employees. HR teams are under enormous pressure to keep every workforce member due to the lengthy and resource-intensive recruitment process.

Companies lose efficiency when employees leave, and HR departments must repeat the recruitment and onboarding process. Turnover costs are well-documented, ranging from 33% of an employee's compensation to a whopping 213% for highly educated executive jobs. While the actual cost of losing and substituting significant individuals varies, one thing is certain: biotech businesses already functioning on tight budgets cannot afford to lose more employees.