While you don’t need a degree to launch your own pharma company, those who are studying chemistry, bio-med, or medicine might find that this is something that they find particularly interesting.
If we keep in mind that almost all pharmaceutical companies started with an idea or a formula and have grown to the multi-billion companies we now see. With some education in the area, you are more likely to understand the industry in a way that will benefit you as you move forward with your plans.
But what does a pharma startup look like? What are the steps that you’d take to bring it to life?
The Idea
It all hinges on having the right idea – and you need to be sure that you aren’t going through product/service/idea blindness. You simply can’t see the faults or issues with the idea. Before you get too far, start talking through the idea enough to get opposing opinions and ideas.
Industry Knowledge
With any start-up, insight into the industry is a must; with some educational background in medicine, chemistry, or anything similar, you have a head start. One of the most recommended steps to take in the early stages is to start talking to business consultants who work in this industry. They will have a wealth of knowledge that will be valuable to you as you move forward.
There are several sectors where you might opt to venture into, including research, trading, manufacturing, marketing, and distribution. Wherever your experience and education lie is the best option. You’ll need to work on contacts across the rest of the sectors.
Licensing and Registration
Before anything is in production or operations have started, you will be subject to licensing and registrations. Documentation and requirements will vary per country, and some have much stricter regulations for anything in the pharma industry. It is very common for pharma companies to form an LLC, as this can be an extra layer of protection (liability).
Companies that will be manufactured will need things like a wholesale drug licence, GST number, and medicine manufacturing licence as a start.
For anything you won’t directly do, you’ll need to find reputable companies to outsource it to – everything from distribution to a chemical sampling service can be used. Your network and contacts will be essential here, and your business consultant might have a list of possible candidates so you can secure those relationships quickly.
Model
There are several models that your business might follow, and it is down to what you want to achieve in the long term and the type of business you will be.
- The development-only model doesn’t do any early research; instead, it is licensed to other companies. Marketing and bringing it to industry is in their wheelhouse.
- A platform model will be invested in early stages, including discovery and development, licensing those things out to others for further development. Typical tech or drug-based companies.
- The product-based model is what we can see with companies like Roche – they do everything from development right through to commercialization (a high-risk model).
- A hybrid model combines product and platform. Licensing out services and commercialization.
Brand
There are more than a few brands that have had their reputations tarnished in big ways – and continue on with business as usual. But smaller pharma companies don’t have the same power or finance to make that work. The absolute key to getting your brand to be recognized is by working directly with the people who prescribe the drugs.
It often involves talks, promotional materials, conventions, and more. These relationships are vital to get into the hands of the consumers in the first place unless you are a strictly OTC medicine.
Just like every other business idea, you are going to need a solid vision, a clean logo, and a website that outlines exactly what it is you do.
Take Inspiration
No business starts with the idea that they don’t want to be successful, and like every industry with the pharmaceutical industry, there are plenty of businesses to look up to (or at least look at). As well as looking at the path that the big companies have taken, look at how smaller businesses are making an impact.
New techniques, new ethos, and sustainability are just a couple of things you can look at. Take inspiration about the type of company you want to be, and work towards it. That can be the guide that gets you into a unique position in the market.
Starting a business might not be the first thing that comes to mind, but it could be an important part of your career planning – it is just as important to know what you don’t want to do: Strategic Career Planning: Setting Goals and Mapping Out Your Professional Path – Graduate Coach.
Featured image by Madison Agard from Unsplash
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