How to start a pharmaceutical company: a comprehensive guide

2. Choice of products and technologies

Several factors influence the choice of products to develop: innovation, development costs, and market potential.

• Patented drugs: they offer high margins, but their development is long and costly.
• Generics: they enable faster market entry, but competition is tougher.
• Biotechnologies: they play an increasingly important role in the pharmaceutical industry, enabling the development of innovative treatments (immunotherapy, gene therapies, etc.). These technologies are particularly attractive to startups seeking to position themselves in high value-added niches, but they require access to substantial financing.

To find out more on pharmaceutical manufacturing of medications, discover our complete article.

3. Financing and business plan

Financing is one of the biggest challenges in setting up a pharmaceutical company. The cost of developing a drug, from initial research to market launch, can lead to millions of euros.

The development of a solid business plan is therefore essential to convince the various types of investors such as:

• Private investors (business angels, venture capital funds),
• Public investors (public subsidies),
• Industrial partners (fundraising).

The business plan must include detailed financial projections, such as:

• R&D costs,
• Production costs,
• Costs related to clinical trials,
• Marketing expenses.

It is important to estimate the return on investment over several years, taking into account the long approval periods (Marketing Authorization-MA) for pharmaceutical products. To learn everything about MA, discover our complete MA guide.