A recurring problem for tech startups has been the inability to successfully diversify the revenue streams into a wide range of business lines. Even some of the most well-known companies that have been started in the last 20 years suffer dramatically from this problem. Firm such as Google and Facebook, even though they have many different product lines, have found it almost impossible to successfully enter into profitable businesses aside from their core business lines.
This is a potentially catastrophic problem for any company, especially one that relies on a new technology that may still be vulnerable to outside competition or attacks from those who may be able to innovate a disruptive solution. As true as this is for tech startups, it is also true in the biotech space. Many biotech firms have been unable to successfully broaden their horizons, becoming almost completely dependent on one narrow line of products for their livelihood. This is never an ideal situation and opens up the business to the potential for a catastrophic disruption in their own market.
But one of the biotech’s most innovative CEOs, Clay Siegall, has largely solved this problem for his own company. Seattle Genetics has been successful in widely diversifying its product line into a large array of disparate businesses. Although Seattle Genetics’ core business is its line of antibody drug conjugate products, drugs like ADCetris only make up a relatively small amount of its total revenues.
The firm currently makes a large amount of money from licensing intellectual property to other firms who are developing their own antibody drug conjugates. It also makes a large amount of money on patented processes involved in not just the creation of antibody drug conjugates but many other types of drugs.
One example of this is the firm’s innovative means of developing monoclonal antibodies, which uses laboratory mice to create the basis of synthetic human antibodies. This highly innovative process is the product of Dr. Siegall and has won him worldwide recognition as being one of the most important contributions to targeted cancer therapy that has ever taken place.
Today, it is widely used in the synthesis of monoclonal antibodies.