Biotech always has been a challenging realm. The science is innovative, its technology makes it capital-intensive, and the related risks are unpredictable. When funding, if partnerships and intellectual property (IP) protection line up, the result can be transformative, both financially and for patients. But when one of those pillars falters, the entire business model is undermined.

Today, biotech is in such a moment. After the exuberant peak of 2020–2021, when capital seemed limitless and initial public offerings (IPOs) rolled out weekly, the industry has now entered a much tougher cycle. Venture capitalists are more selective, pharmaceutical partners are choosier, and at the very same time, the legal landscape for patents — the lifeblood of biotech value — has grown more challenging.

This collision of forces has created a kind of “legal friction” that every biotech leader now must manage. The good news is that with the right strategies, it is still possible to collaborate and attract investment. But doing so requires recognizing how the ground has shifted, and adjusting accordingly.

Click here to read the full article written by Ken Dow and Weihong Hsing published in Life Science Leader.