Abstract
Biotechnology companies are increasingly challenging traditional pharmaceutical companies as the discoverers, developers and marketers of drugs. The biotechnology sector, however, is facing a paradox. The sector's strength has been based on companies' innovation abilities while the sector's future success will depend on growth. The traditional pharmaceutical business model, however, may not be the best for biotechnology companies to emulate. Instead, biotechnology companies may be better served by transforming themselves into product-driven companies with a centre of innovation and a network of third parties or capability providers that can supply elements such as development, manufacturing and sales.
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