Today I am over at San Diego State University where I’m teaching executive MBA classes. Along with cities like Madison, Austin, Raleigh Durham and Boston, San Diego is a key player in a field that may be more of a hotbed for innovation than any other: biotechnology. Genetic engineering, genomics, and molecular drug development are just a few of the industry terms that we are all becoming familiar with.
It’s an exciting environment here in San Diego. We’re anchored by research institutions and universities such the Salk Institute, Scripps Research Institute, University of California-San Diego, and hundreds of biotechnology firms, this could be the biological Silicon Valley for the 21st century.
With unequaled potential, the industry is still trying to prove it’s financial viability. This is because of many factors, but mostly it’s because it is researching the unknown and results can’t be predicted.
For example, in biopharmaceuticals, research for a new drug can take 10 years or more and cost more than $1 billion before any revenue is realized. On top of that it only takes one adverse study or regulation problem along the way to tip the scales between incredible income and huge losses.…
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