July 13, 2023
Extending the Financial Runway and Navigating the Current Environment with Lab-as-a-Service Solutions
Labs-as-a-Service (LaaS) companies can offer a mix of physical, operational, and consultative resources designed to provide maximum value and accelerate innovation. Photo courtesy of SmartLabs
The biotech/biopharma industry is experiencing change like never before. Investments are temporarily on pause, venture capitalists are cautious, and the sector is grappling with the impact of a challenging macroeconomic environment. Tight capital markets mean that financing is much harder to come by, and the collapse of several regional banks and related banking instability have compounded these concerns. Biotech/biopharma companies desperately need a way to extend their financial runway by reducing capital investment requirements. This is where Labs-as-a-Service (LaaS) comes in—with a mix of physical, operational, and consultative resources designed to provide maximum value and accelerate innovation.
So what is LaaS and how is it helping to solve the bioscience financing crisis? In short, LaaS companies like SmartLabs offer advanced lab spaces that flex over time to meet companies’ needs, alongside operational support services. This avoids costly upfront capital expenditure for lab infrastructures. SmartLabs goes beyond by providing flexible terms, fractional access to reconfigurable solutions, and a wide range of services essential for successfully running a lab, bringing it to the forefront of innovation.
Industry players in all stages of development and across all modalities can leverage the infrastructure and expertise provided by premier LaaS players like SmartLabs, reducing overhead costs associated with many aspects of facility and lab management. This support allows organizations to allocate capital strategically toward core research and development activities and keep their focus where it belongs: on the science. LaaS companies are all the more applicable to biotech now that capital is scarce—and it effectively serves growing and larger enterprises by offering nimble, reconfigurable, on-demand and ready-to-go solutions.
Financial freedom and flexibility are critical for biotech/biopharma companies, especially during a down cycle like the current one. Extending available capital helps these companies sustain operations and continue pursuing the innovation that the world needs. There’s a direct correlation between successful biotech/biopharma innovation and positive patient outcomes, and LaaS takes away the worries and cycles of operating a lab while making science the organizations’ sole mission in that lab. Running facilities at scale, consolidating operations, and providing access to shared resources enable significant economies of scale. By making enterprise-grade facilities and operations available on a short-term contract at a micro or macro-scale, LaaS companies make research and development more accessible, affordable, and significantly less risky. As companies have more time and resources to explore and validate ideas, they can leverage LaaS’ shared resources to foster innovation and cross-pollination of ideas, further fueling scientific advancements.
But LaaS doesn’t stop at physical benefits. Part of the LaaS value proposition—particularly true for SmartLabs, which operates across the R&D lifecycle and provides extensive expertise in lab, vivarium, and cGMP production operations—is the built-in expertise that eliminates the need to hire dedicated functional or lab operations experts. From operational support to domain experts with specialized knowledge and experience in lab operations, LaaS is designed to assist companies in optimizing resource utilization, streamlining workflows, and ensuring efficient lab operations. By tapping into this external expertise, biotech/biopharma companies can benefit from the collective knowledge and capabilities of experienced professionals, eliminating the need for costly recruitment processes and ongoing employment expenses. All this happens with a privacy wall between companies and LaaS advisors to protect intellectual property.
In summary, with its scalable and flexible approach, LaaS revolutionizes the biotech/biopharma industry’s ability to navigate down cycles while increasing scientific achievements. By embracing LaaS, biotech/biopharma companies can confidently navigate down cycles, minimize risk, and focus on their core mission of advancing healthcare innovation.