Construction of a business model to assure financial sustainability of biobanks.

Abstract

Biobank-suisse (BBS) is a collaborative network of biobanks in Switzerland. Since 2005, the network has worked with biobank managers towards a Swiss biobanking platform that harmonizes structures and procedures. The work with biobank managers has shown that long-term, sustainable financing is difficult to obtain. In this report, three typical biobank business models are identified and their characteristics analyzed. Five forces analysis was used to understand the competitive environment of biobanks. Data provided by OECD was used for financial estimations. The model was constructed using the business model canvas tool. The business models identified feature financing influenced by the economic situation and the research budgets in a given country. Overall, the competitive environment for biobanks is positive. The bargaining power with the buyer is negative since price setting and demand prediction is difficult. In Switzerland, the healthcare industry collects approximately 5600 U.S. dollars per person and year. If each Swiss citizen paid 0.1% (or 5 U.S. dollars) of this amount to Swiss biobanks, 45 million U.S. dollars could be collected. This compares to the approximately 10 million U.S. dollars made available for cohort studies, longitudinal studies, and pathology biobanks through science funding. With the same approach, Germany, the United States, Canada, France, and the United Kingdom could collect 361, 2634, 154, 264, and 221 million U.S. dollars, respectively. In Switzerland and in other countries, an annual fee less than 5 U.S. dollars per person is sufficient to provide biobanks with sustainable financing. This inspired us to construct a business model that not only includes the academic and industrial research sectors as customer segment, but also includes the population. The revenues would be collected as fees by the healthcare system. In Italy and Germany, a small share of healthcare spending is already used to finance selected clinical trials. The legal frameworks could serve as templates for the business model proposed here.