# Therapeutics have established sales channels The FDA approval process coupled with [[Development Tranches and Tranched Funding]] provide new therapeutics with a relatively straightforward (but still risky!) path from lab to market. This process depends on the incredibly low market risk for therapeutics that make it through the FDA — insurance companies buy the majority of therapeutics and will often agree that they will buy and how much they will pay for a given therapeutic assuming it makes it through the approval process. This process is mediated in large part through the investors. ([[Old school Pharma VCs add value because they help startups go through an established sales process to pharma companies]]) This is an example of a systematic transfer between a lab and a market. ([[Manage the Transfer not the Technology]]) By contrast, [[Frontier tech has bespoke sales channels]]. <!-- #evergreen --> [Web URL for this note](http://notes.benjaminreinhardt.com/Therapeutics+have+established+sales+channels) [Comment on this note](http://via.hypothes.is/http://notes.benjaminreinhardt.com/Therapeutics+have+established+sales+channels)