What does Business Development (BD) actually do in biotech and pharma? From licensing deals to M&A, learn about the 5 core BD functions, daily responsibilities, and how BD differs from sales. A practical guide from an industry BD professional.
Have you ever seen those people in a biotech/pharma conference or business event—wearing suits or business casual, holding coffee, chatting with people from different countries, looking busy but somehow not like they’re selling anything?
Okay fine, holding coffee is not necessary… but anyway, let’s get back on track.
These people aren’t sales representatives. They’re not R&D scientists either. Yet they might be negotiating or trying to create deals worth millions—or even hundreds of millions.
They’re BD: Business Development.
Wikipedia’s formal definition is:
“Business development entails tasks and processes to develop and implement growth opportunities within and between business organizations.” Wikipedia – business development
It sounds a bit abstract, right?
Here’s my version:
BD is the function that opens new doors, builds new partnerships, and creates new value.
To put it simply, BD exists to help a company grow.
Over the years as a BD, my colleagues often ask me:
“So what do you actually do every day?” (Don’t worry, they’re nice people—they’re genuinely curious, not attacking me.) This article is my attempt to answer that question clearly.
In this industry, BD can take many forms. Here are the five most common ones.
This is probably the most classic BD activity.
Deals include details like exclusivity, territories, development rights, and more. Every line matters.
Recently, many companies are also doing NewCo licensing:
Spin off a non-core asset into a new company → external investors fund it → the original company/VC/PE keeps equity.
It reduces risk for the parent company and gives investors a focused vehicle to grow. It is a pretty clever structure if used well.
This isn’t just buying or selling.
It’s “you have what I need and I have what you need, so let’s join forces.”
Here are common forms:
The idea is to create 1 + 1 > 2.
Each partner fills a different skill gap. Kind of like team composition in video games, right?
This is like sales, but more strategic in nature. Especially common in CDMO/CMO/CRO industries.
Here are typical tasks:
The goal is to build long-term, stable revenue streams.
For small to mid-sized companies without a dedicated strategy department, BD often has to wear the strategic consultant hat:
This could includes:
Good business doesn’t rely on luck. It relies on data, logic, and strategic thinking.
This requires close collaboration with finance/investment departments:
Work might includes:
It’s the fastest method to grow, but also relatively complex.
Resource-rich, often on the buying side. Work often centers on evaluating and negotiating large transactions. High pressure but exciting.
More like “salesperson + strategic consultant.” You need to show technology’s value to potential partners while ensuring deal terms keep the company alive. In other words, you need to sell the tech’s value despite limited resources.
Wearing multiple hats. Today you might be in-licensing, tomorrow out-licensing. Needs flexibility to respond to market changes.
Promoting existing products to more customers, goal is hitting sales numbers.
Building brand image, creating product demand, bringing in customers who want to buy.
Creating new business opportunities and partnerships to grow the company
Think of it this way: Sales is selling lunch boxes, Marketing is getting more people to want to buy lunch boxes here, and BD is evaluating customers and products then deciding to also sell bubble tea.
Now that we’ve covered the big picture, let’s talk about what the day-to-day really looks like.
BD is like a radar constantly scanning industry dynamics:
When discovering promising technology, quick evaluation is key:
If yes → reach out.
After identifying targets, it’s time to “build bridges”:
This stage needs communication skills and judgment. We need to assess the other party’s capabilities and willingness to cooperate.
If both sides align → move to term sheets/agreement.
This is the most technical part of BD work. A licensing deal might include:
For CDMO deals, it might include:
For CDMO contracts, besides rights and obligations, the most important thing is discussing actual needs with clients, providing comprehensive work scope from cell line development to API or finished product, including timelines and costs.
BD needs to design a structure that balances risks and rewards, and keeps both parties motivated.
Due diligence is basically “checking the truth behind the PowerPoint.”
After both parties show interest in collaboration, deep verification begins. Usually the paying party (buyer) investigates the other party (seller), requiring cross-departmental collaboration. The scope and depth depend on both parties’ actual situations.
Possibly including common areas:
BD acts as a coordinator—making sure all internal teams work together.
Congratulations! It’s almost there with the contract. However, there are still several things that need to be done before and after signing.
Negotiations continue when we prepare for contact signing. Negotiation isn’t fighting, but a process where both parties clarify things through (bargaining):
After signing, BD continues to track collaboration progress and make sure the partnership runs smoothly.
Many people think BD is always out and about, but honestly, BD spends more than half the time on internal communication and coordination, such as:
Sometimes BD feels like the company’s internal “translator,” translating business matters into technical language, then technical language into financial language…(Are we saying the same language?) So BD actually needs to spend quite a bit of time on discussions and coordination with internal colleagues.
In the biotech and pharma field, I’ve worked in three roles: R&D, PM, and BD. Each has its own fun and interesting aspects.
R&D directly participates in drug research and development, PM manages the entire product, while BD is responsible for business growth. Each role has its own fun and interesting aspects.
BD is the bridge between science and business, company strategist, and the connector of the industry ecosystem. This work requires diverse capabilities, clear thinking, and the courage to face uncertainty.
But for those who love challenges, enjoy learning, and want to create real impact in the industry, BD is a great and attractive opportunity! The next industry-changing deal might have your fingerprint on it, who knows?
Want to know more about BD in biotech and pharma? Feel free to reach out via Email or LinkedIn! Also welcome to share your thoughts or questions in the comments.
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