To start a pharmaceutical company, a person needs to have the intellectual property rights to a new medication or treatment with market potential. The functionality of the medication is scrutinized, then market consultants are hired to assess sales viability. Market outcomes are then projected to aid in putting together an attractive business plan for investors.Continue Reading
Assessing the functionality of a new medication involves pinpointing the problem it is capable of solving, determining its advantages over current therapies and identifying its potential safety issues. Once these questions have been answered, consultants and contractors are hired to assess the legal, administrative, pharmaceutical and market viability.
If these specialists deem the drug market viable, the next step is to assess potential market size, current competitors, the percentage of the market that can be captured and determine possible contingency plans should the drug fail upon release. An attractive business plan is formulated according to this gathered data, featuring sections on product need, competitive analysis and request for funding. This business plan is shown to both public and private investors in an attempt to secure funding. Such investors include: the U.S. Department of Defense, the Small Business Technology Transfer fund and pharmaceutically-oriented venture capital groups.Learn more about Managing a Business