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Healthcare Biotechnology companies are, by and large, expected to
provide solid stream of ROI being of critical support industry and often
of long duration initial corporation life. Most of these corporations
have initial corporation life of thirty (30) years. Admittedly, in some respects,
these corporations in their essence are specialized forms of
Specialty Chemicals
companies
except for being long-run production producers of large
volume biologics suspension and chemical compound of drugs, and usually
of low product-count.
The corporation engaging in Market Participations in this industry are
commonly characterized by some features, which also invariably guide the
evolution through the time-span of the initial corporation life.
Generally, these companies have maturity ages of between ten (10) yrs to
fifteen (15) years and as such take very long times to reach maturity.
The maturity age usually is when the time span over which the company
fully recovers cumulative losses incurred through its venture
development stages. Notably, every company usually reaches maturity after two
times the duration for from inception taken to attain Critical Mass; so a company that
attains critical mass after five (5) years takes another ten (10) years
to reach maturity.
Clearly, the long duration maturity age of these companies, raises the
possibility that the Market Allocation at the inception of operation may
continually suffer changes, which at times will be eroding in size and
at other times will be expanding in volume.
As common industry practice, the process of most such companies are
designed as mere scale-up from the laboratory bench assembly without
actually developing Engineering Bench Scale Model; rather, the designs of
most processes are performed on the basis of ratio analysis by which the
quotient of the product to a reference raw material is used as a basis
to define the reference scale against which the scale up similitude is
performed.
As a result of the use of ratio analysis, the concept of chemical
kinetics analysis is not well applied, being not well developed for use
for the process development. The absence of the kinetics studies and
analysis often results in process designs that are not optimal, so it is
tenable to accept that the process in use may not be optimal; after all,
the design of the reactor based on the use of the applicable chemical
kinetics properties greatly impacts the post-reaction quantity of
by-products produced, and hence the the post-reaction
products Separation Process that is deployed to purify the products.
Almost as a norm also, several of these corporations seldom evolve into Enduring
Existence as standalone but rather get acquired by other companies of
the industry. The reality is that, a company that takes five years to
reach critical mass often go through several series of stock offerings
for funding until it attains critical mass. However, over that
period of evolution towards attaining critical mass, the corporation can
become so severely financially strained as to put up itself for sale
result in the near normal and industry-characteristic acquisitions.
So for viability of a corporation of the industry that has opted to
attain Enduring existence as a standalone company, prevailing either as a private
company or as a public company with Initial Public Offering, IPO, the
company must
address several factors to bring about the alternative to the
acquisition outcome.
At a minimum, the prospective profile of
the Market Allocation changes needs to be monitored to advise the
existence or lack thereof of the target markets, and so computationally constructed
for the investing guidance, and scoping the operations.
Effectively a corporation engaged in market participation in the
industry would necessarily consider a bench scale model development even
if in the abstract for developing a computational design for comparison
with the operating process design, besides that gives better foundation
for Pilot Plants and hence Commercial scale design.
Whether in drugs development or biologic production the reality is that
the reaction mechanism in the cell for the use of the drugs, as is also
for producing biologics,
are occurring not as chemical in solutions but rather as Condensed
Soft-Matter suspensions. The physicochemical dynamics of Condensed Soft-Matter are
very different from chemicals in solution.
Generally biochemical and biologics enzymatic reactions, as is
characteristics of most cellular reactions, have complex reaction mechanisms that
are best aptly described as biophysicochemical reaction kinetics, being
that the reactions are combinations of reactions dynamics of
Solid Body, Biologics and Chemical Bonds. The proper
integration of these dynamics to constructing the reaction rate
constants is not trivial.
While the evaluation of the chemical bonds reaction dynamics may be
somewhat involved it is nonetheless reasonably compact and straightforward. However,
the capturing of the solid body reactions dynamics is somewhat quite involved
and entails extensive computations involving applying the still emerging
uncommon field of Biological Thermodynamics
being built upon the equally emerging science of Condensed Soft-Matter Thermodynamics.
Because the impacts of these common characteristics of the corporations
participating in this industry are
somewhat technical, Viability Analytics for evaluating the corporate
viability actually can serve in some respects as “viability design
guidance”
because the analytics invariably elicit the computational solutions --to
the characteristics' impacts; that project viability and so proffer the
option for implementing the solutions:
The
Viability Analytics computational evaluation presumes context of a
production process devoid of the delineated aforementioned common
characteristics. The determination of the reaction
kinetics and rate expression should invariably suggest the use of
smaller process or change of operating conditions that should result in
higher productivity. The possibly extra-sized Separation Process likely adds to the
overall cost of production in the form of costs of waste raw material,
higher-than necessary operating
cost of separation process, or need for larger than necessary process size
for production at viability Break-Even volume.
Consequently, the Viability Analytics of such corporation gets heavily
tilted towards performing detailed Production Analytics of the
production plant that happens to be very computation intensive: More
specifically, for each corporation, the analytics develops the
reaction
mechanism construction based on the raw materials specified in the
patent filed on the drugs or production mechanism of the biologics.
Based on the prevailing by-products list, a concept design is then
developed and adopted for the rest of the evaluation. The concept
process design, however, is contrasted with the existing process
whenever access to the existing process design is granted by the
corporation. The ready capture of complex physical process layouts in
the equivalent virtual forms is but one of the salient essential features of
the company’s Production Analytics as performed with the
Digital Process Production system that is a core component of the
Viability Analytics
computations for corporations participating in the Healthcare
Biotechnology Industry, the results of which are available for the advisory of
investors actively investing in the said industry |
