Browne Consulting provides finance and accounting services for more than one hundred biotech companies, from seed stage through IPO. We are now leveraging this expertise into launching a new financial planning and analysis (FP&A) practice that will address the financial challenges for early stage biotechs.
Common pain points for early stage biotech companies
Cash flow is the most important consideration for any early stage biotech. However, there are financial pitfalls that even the most well-funded organization can encounter without adequate planning. While every early stage business needs to understand their position within their industry and assess their financial standing, biotech companies need to balance that with the unpredictability of developing a product. We have identified the three most common financial challenges for early stage biotech companies and how to plan for them.
1. Splitting focus between biotech and business
Our clients are experts when it comes to the science behind their platforms. But even the most innovative scientific breakthroughs are not sufficient to build and grow a successful biotech company. There are professionals who dedicate their entire careers to FP&A for biotech companies and stay abreast of the current best practices in this ever-changing industry.
Browne Consulting’s new FP&A practice comprises experts who have worked in the field for decades. We have translated that experience into a planning model for new clients to help them achieve optimal planning and resource allocation. When companies leverage experts in the management of cash flow, profits and loss, and identifying risks and opportunities, they can continue to focus on groundbreaking science and technology.
By working closely with founders, scientists, and the C-suite to understand the intricacies of their work, a specialized finance firm is able to act as a conduit between biotech and business, converting the science into meaningful financial outputs.
2. Unexpected costs of biotechnology
Developing a product can result in unexpected costs that a general accountant may not know to look for. A finance firm that specializes in biotechnology will know how to account for pre-clinical and clinical activities. From a finance perspective, they will understand how the different phases of studies progress. This includes what red flags to look for. For example, certain factors can cause significant trial delays, resulting in lower patient enrollment and increased CRO management fees. These expenses can be debilitating to a growing biotech company.
While our clients are redefining the field of biotech, there is no need for them to reinvent the wheel financially. We utilize our decades of experience providing FP&A support for biotech companies. This helps to keep clients aware of any costs, how best to account for them, and how it impacts the business.
3. Future planning
Our clients always keep one eye on the horizon when it comes to their science, and have a vision of how their technology will impact the world. While they are working towards their groundbreaking goals, we ensure that their plans are financially sound every step of the way.
With our specialized FP&A practice, we budget and plan for each developmental stage of a product. We work in collaboration with senior management to identify risks and opportunities, as well as optimal resource allocation. All of the processes and systems that we put in place for clients account for short-and-long-term eventualities. They are designed to be scalable and flexible to grow with the client.
A critical aspect of providing best-in-class FP&A services is ensuring that our clients invest in the best technology available. We are constantly researching various solutions such as financial planning and analytical systems that would enable clients to access their data instantly in one convenient dashboard. By focusing solely on biotech companies, our FP&A team is able to provide clients with the deepest level of industry expertise to optimize their future planning.
The Future of Biotech with Browne Consulting
Browne Consulting is aggressively expanding its FP&A practice to meet overwhelming client demand. We are in the midst of hiring additional FP&A experts from across a variety of companies. This includes private, start-ups, and big pharma to add to our diverse team to address the financial challenges for early stage biotechs and help them succeed.
Learn more about what Browne Consulting can do for your biotech company.