Biotech vs Biopharma
Biotech and biopharma are frequently used interchangeably, but they have some distinct differences. Learn more about their distinctions as we define and clarify these industry terms.
Biotech vs Biopharma
When discussing advances in bioprocessing, the terms ‘biotech’ and ‘biopharma’ are frequently used. However, when asked to define the two, many struggle to point out the distinct differences between the terms. In this article, we will define biotech and biopharma, and explore the ways in which they are similar and different.
What is Biotech?
Typically referring to smaller organizations and companies, biotech refers to utilizing biology, or living organisms such as cells, bacteria, plants, biomolecules, and more to create and develop processes and products. Often requiring higher operating costs, biotech discoveries can often take many years to complete.
What is Biopharma?
Biopharma, also referred to as biopharmaceuticals, conversely refers to researching, manufacturing, producing, marketing, or extracting treatments for disease by utilizing chemical and biological processes and technologies. These companies tend to be much larger than biotech companies, and can sometimes use the research and discoveries of biotech companies as building blocks when developing their own products.
Main Differences Between Biotech and Biopharma
Production Methods
There is some overlap in production methods between biopharma and biotech, especially when it comes to products created from biological sources such as monoclonal antibodies or other biomolecules. However, the differentiation between the two comes from the fact that biopharma products are often created from a combination of biological and chemical sources, or only chemical sources.
Company Size
As mentioned in the definitions above, one of the biggest differentiators between biotech and biopharma companies is size. According to Statista, the average biotech company size by employee count ranges from around 100 to 1,000 employees. In comparison, biopharma companies, on average, have a greater number of employees. As an example, one of the main players in the biopharma industry, Pfizer, reported having approximately 88,000 employees as of July 2024.
It is important to note that this differentiator is not true in all cases, and there can be a significant overlap in the number of employees at both types of organizations.
Cost and Market Size
In addition to company size, there are also major differences between costs and market value in both industries. As mentioned in the definition section, due to the length of time needed to make biotechnology discoveries, products, and processes, the operational costs of biotech tend to be comparatively higher.
As for market size, the global biopharma market was evaluated to be worth approximately $3.67 trillion in 2023, while the biotech market was approximated to be worth $1.38 trillion that same year. This indicated that the return on investment may also be much higher in biotech. The biopharma market has consistently been larger than the biotech market.
One major player that could alter the cost of getting a product to market in both industries is AI, or artificial intelligence. We dive deeper into the expected effects of AI in the future of bioprocessing in our article “The Effect of Artificial Intelligence on Biopharma”.
Another factor to consider is that biopharma companies tend to have completed treatments already on the market, allowing them to utilize an income stream for further research and development on new products. This is less often the case with smaller, lesser-known biotech companies.
Similarities Between the Terms
For both biopharma and biotech, the end goal tends to be similar - create treatments for individuals who are struggling with a specific ailment, disease, or other medical issue. Although the two can have different lengths in production timeline, both industries require a large investment of time for each new product. Additionally, both biopharma and biotech are founded on biology, and utilize biological elements or theories to create their new products.
Where to Learn More About the Biotech Industry
In addition to differentiating between common industry terms, there are plenty of areas in bioprocessing that are worth exploring further.
To learn more about the single-use industry, check out our articles “What is Single-Use Manufacturing?”, “What is a Single-Use Assembly?”, and “What is a Single-Use Component?”.
For more information on bioprocessing, take a look at our application areas series, which includes “What is Upstream Bioprocessing?”, “What is Downstream Bioprocessing?”, “What is Drug Discovery?”, and “What is Fill-Finish?”. Additionally, to explore some of the industry-leading equipment options in single-use bioprocessing, visit the High Purity New England (HPNE) product portfolio.
Interested in exploring more about the bioprocessing industry? Visit our blogs page to find more information.
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About HPNE
As the industry needs grow, High Purity New England, Inc. continues to supply the biopharmaceutical industry with a range of innovative products, from drug discovery and development to fill-finish, including their flagship product, custom single-use assemblies, as well as pumps, sensors, bioreactor systems, storage and handling solutions and other single-use solutions. Along with their own manufactured products for the global market, they are also a distributor for more than 18 brands in North America.
