The Street spoke to Dr. Mark Ahn recently about his research into biotech startups. Dr. Ahn has his own company that was once a fledgling life sciences company. Now, he looks at the ways other companies handle their business. He knows that there are best practices for all businesses, and he hopes that his information will help new companies move in the right direction.
When Dr. Ahn looked at startups all over the biotech world, he notice that many of them did not want to wait to make a profit. The staff can be paid, but these companies were breaking even when their products had not all made it to the market yet. If these companies believed that they were not making money fast enough, they would panic. The panicked moves that these companies made would cause them to make business decisions that were not wise in the least.
When a company is not willing to wait for all its projects to come through, it is hard for that company to remain solvent. Dr. Ahn advises all these companies to move slowly in the process of creating new products so that they can be viable for many decades to come.
See here for a link to the original story: http://www.thestreet.com/story/13010326/1/mark-ahn-explains-why-some-biotech-startups-succeed-while-others-wither.html