Get these analyses to your inbox — https://axial.substack.com/
As always, if you or someone you know has a great idea or company in life sciences, Axial would be excited to get to know you and possibly invest in your vision and company — info@axialsprawl.com
To build off the analysis on substitutes and complements in life sciences — https://axial.substack.com/p/substitutes-and-complements-in-life, the output of that work is a business model matrix:
Technologies enable new business models but the underlying market structures determine how successful they can be. From a simple supply chain view, there are four major business model classes:
- Consolidated demand and supply
With a market that has simple distribution but pressure on pricing is a market that sets a high bar for success. This is not the ideal market structure, it might be the worst out of the four, so a business needs to solve a big problem (i.e. high demand) to overcome some of the competition and supply-side attacks. The companies that endure in these markets often have a great product with a high value proposition, at least temporarily, that gives the company a head start to build moats like brand and sales & marketing capabilities. In life sciences, Align Technology solved a large problem in orthodontics — straightening teeth — however its…
