The pharmaceutical industry is vertically integrated and becoming more so from initial drug development to marketing to final distribution. Of all these activities, the most difficult, capital-intensive, and uncertain of success is the search for new drugs. It is still fraught with risk, however, as a promising project can easily turn into a wild goose chase hundreds of millions of dollars down the road. Biotechnology refers to techniques for manipulating proteins, genes, and other agents at the molecular level, many of which govern the behavior of cells. Biotech has given us innovations in areas from new drugs like Viagra and Rogaine to the use of DNA in criminal forensics, but most observers believe the field is just getting started and will eventually lead to breakthroughs in treating incurable diseases.
Most pharmaceutical companies are large and well established.
If working for one is like driving a Cadillac smooth, comfortable, predictable then working for a biotech company is like driving an Alfa Romeo fast, wild, and unreliable. On the other hand, you may find yourself worried about where your next paycheck will come from. Today's new laboratory technologies promise drugs that work at the level of genes and proteins, but getting from the promise to the profit requires immense investment, and that is driving a round of worldwide consolidation, as U.S. and European firms engage in a frenzy of mergers and acquisitions. In the news as of this writing is another huge merger, though who will participate is unclear, as both Pfizer and American Home Products are bidding to merge with Warner-Lambert. Often mergers are motivated by a need to cut costs, and that can mean massive layoffs.