Outsourcing AgBiotech Product Development:
Agbiotech-Betwixt and Between
Originally Published in CanBiotech BioMed Outsourcing Newsletter: Volume 1, Issue 1, September 2002
By POS Pilot Plant Corporation
Dennis Trumpy, Director of Business Development
POS is a contract research organization serving bioprocessing industries including agbiotechnology.
For the agbiotech industry, product development is becoming ever more critical, yet effective execution can prove exceedingly difficult. As agbiotech’s focus moves from producer traits to output traits, process and product development become essential to success. Yet few facilities exist which meet the special needs of the agbiotech industry. The problem arises from the very nature of agbiotech products. Agbiotech product development often falls between two established industries: Traditional agri-products and pharmaceuticals.
The following table helps to clarify the similarities and differences between the three groups under consideration. It shows how agbiotech product development falls in between traditional agri-products and pharmaceuticals:
|
Product Development Issue |
Traditional
Agri-Products |
Pharmaceuticals |
Agbiotech products |
|
Ingredient Supply |
Established commodities, unlimited supply |
Custom manufactured, usually synthesized |
Limited supply, long delay to replenish |
|
Regulatory Standards |
Relatively low - well established for each industry |
Very high, established pharmaceutical standards |
Under development, becoming more stringent;
Documentation critical |
|
Batch Size |
Large for customer evaluation |
Small for clinical tests |
Large for customer evaluation or small for clinical trials |
|
Product Development Risk |
Low: Ingredients readily available, product development cost is relatively low |
Very high: Synthesis of ingredients, many hurdles to success |
High: Re-grow ingredients, product development expensive |
|
Technology Platform |
Industry specific but established |
Newly developed |
Hybrid of technologies, adaptation critical |
The net result is this: Agbiotech product development shares many of the same risk factors as pharmaceuticals but its technology platform and batch size more closely resemble that of traditional agri-products. The result is that both agri-product and pharmaceutical product development partners are often ill suited to address the needs of agbiotech product development. Pharmaceutical developers are cost prohibitive and lack the technological expertise. Agri-product developers lack the risk management, documentation and product segregation skills required by agbiotech.
What are product developers in the agbiotech industry to do? Here are some suggestions:
- Find a partner that will meet your needs in the long run. Work with the organization and be prepared to be a catalyst for change. You are a pioneer and the right outsourcing firm will welcome the chance to meet challenges together with you.
- Focus on the issues that are most important to your product’s success. Knowing which issues you are willing to compromise will help you select the most appropriate partner.
- Find an organization with a successful history at developing new products for the agbiotech industry. Benefit from their experience to shorten your time to market.
