Biomedical Engineering Reference
In-Depth Information
diseases like the fat stem cell treatments for animals that have
recently moved into human clinical trials. Chapter 3 discusses in more
detail the market demand that is influencing the future shape of the
stem cell market.
1.4.2 Therelationshipbetweenriskandreturn
The other major factor limiting the potential success of emerging stem
cell companies is the relationship between risk and return. Given the
potential limits on market size and the high costs of investing in stem
cell companies, companies have to be somewhat strategic in focusing
their attentions, utilizing some of the same strategies that have been
discussed previously. Although the off-the-shelf product that can be
used in any patient somewhat like an average pharmaceutical is
presented in media debates around stem cell science as though they
are just around the corner, it may in fact be more cost-effective for
emerging companies to focus on other strategies instead. For example,
obtaining Orphan Drug designation could be a significant boost to
enhancing research and development capacity in disease areas with
limited market size (Freeman et al., 2010).
1.5 What are the most lucrative commercial models to
adopt?
The question is: which commercial models are going to be the most
viable overall? As the examples discussed throughout this topic
show, so far, manufacturing, storage, reagents and disease-in-the-dish
models are currently the most lucrative models available in the stem
cell industries. To date, the adult stem cell treatments that rely on
collecting small samples of relatively benign tissue (that is fat or cord
blood) to process and reuse in the same patient have been the most
clinically successful. In choosing which commercial model to adopt
though, there are a number of barriers that need to be considered
before taking a product into the marketplace. Negotiating regulatory
barriers, working with limited resources and identifying the most
lucrative potential for products in development are part and parcel
