What you should know before scaling your Life Sciences start-up?
Posted on May 15, 2023
READY TO SCALE? WHAT NEXT?
Building a successful Life Science company takes time, resources, expertise, and persistence. Once a Start-Up achieves significant success in its research and secures initial funding rounds, it becomes necessary to move from a small lab space into a larger, tailor-made facility that caters to its specific requirements.
TIME IS EVERYTHING!
Time-to-market is critical for success, and companies require proficient commercial infrastructure partners who can overcome supply chain challenges, manage government approvals, and establish new operational sites within defined timelines.
TO LEASE OR TO BUY?
If you have made the decision to scale-up, transitioning from a small lab space to a larger facility can be overwhelming. Opting to lease a facility may be a more favorable choice than investing your capital and time into constructing your own facility, especially if you need to commence operations promptly.
Leasing a facility is a wiser approach for a life science scale-up company because leasing provides several advantages such as reduced financial risk, improved cash flow, flexibility, and access to professional management, which can be beneficial in the early stages of development.
KEY CONSIDERATIONS WHEN SCALING:
Before selecting the ideal facility for scaling operations, multiple factors must be considered. Cluster environment, location, access to skilled talent pool, opportunities to collaborate are some of the ecosystem factors to consider whereas size, flexibility, safety and compliance and facilities management are some of the critical infrastructure factors to consider.
SIGNIFICANCE OF BEING PART OF A CLUSTER: Scaling in an emerging or established Life Science cluster provides access to essential resources and presents opportunities for networking and collaboration with other life science companies, fostering a supportive ecosystem of services.
Life Science clusters offer several advantages such as availability of shared resources, including specialized equipment, core facilities, a common analytical laboratory, and other research services. This proximity can result in significant time and cost savings for scale-ups. These clusters usually have all the necessary government authorizations and the required environmental clearances to commence operations.
- LOCATION: For life sciences scale-ups, choosing the appropriate location within a city that hosts emerging or established life science clusters, along with efficient transportation networks and essential social infrastructure like affordable housing for employees, is of utmost importance.
- ACCESS TO SKILLED TALENT POOL: Access to a skilled talent pool is of paramount importance for a life sciences scale-up company. In the dynamic and rapidly evolving field of life sciences, attracting and retaining top-notch talent is crucial for driving innovation, accelerating growth, and achieving success.
- OPPORTUNITIES TO COLLABORATE: Collaboration is essential in life sciences, and scale-ups need space for team meetings, brainstorming, and knowledge sharing with other life science companies. This includes conference rooms, break areas, and collaboration spaces.
PURPOSE BUILT INFRASTRUCTURE: Life science scale-ups require highly efficient buildings equipped with specialized infrastructure that caters to their unique needs. The space must possess the flexibility to adapt as the company scales and expands. Apart from the infrastructure itself, access to a proficient facilities management team can significantly reduce maintenance costs and ensure smooth operations.
- SIZE & FLEXIBILITY: The space required for life science scale ups varies based on the type of research and the number of employees. A typical scale up needs between 5,000 to 25,000 square feet of lab space with flexible spaces that can be easily reconfigured as they grow and evolve. This means having a flexible layout, modular designs, and adaptable infrastructure.
- SAFETY & COMPLIANCE: Safety and compliance are critical for life sciences scale-ups, so the lab space should be designed to meet regulatory requirements, including proper ventilation, waste disposal, and hazardous materials storage.
- SPECIALIZED INFRASTRUCTURE: Life science scale-ups need specialized amenities and utilities to support their research, such as specialized HVAC systems, effluent treatment plants, clean rooms, hazardous waste disposal systems, and separate areas to store chemicals and solvents.
- BUILDING EFFICIENCY: High Building efficiency is an essential component of reducing energy consumption and carbon emissions. This can lower operating costs for tenants.
- SUSTAINABILITY: Companies that adopt sustainable practices can reduce costs and increase profitability. Investors view sustainable operations as a reflection of effective management and a commitment to environmental responsibility.
- FACILITIES MANAGEMENT: Effective life sciences facilities management is critical to the success of life science organizations, as it can impact the quality of products and research outcomes, as well as the safety and well-being of the employees.
To summarize, for a life sciences start-up aiming to scale and establish operations efficiently, careful consideration of both ecosystem and infrastructural factors is paramount. These factors play a crucial role in driving the growth and ultimate success of the company.
Written by: Dr. Manasa Madasu, Senior Manager, Rx Propellant Pvt. Ltd.
ABOUT Rx PROPELLANT
Rx Propellant is India’s leading life sciences infrastructure platform that helps companies scale while enabling them to stay asset light. With a rare fusion of real estate development expertise and an in-depth understanding of the life sciences sector, we hold a distinctive position within the industry. While our focus lies in infrastructure development, we go beyond mere square footage. We develop vibrant ecosystems that inspire innovation and collaboration.
For more information, please visit : https://rxpropellant.com/