ABSTRACT
Profitability is a measure of the investment rationale. Even before profitability becomes an overriding issue, attention to the more mundane aspects of planning is needed. For fermentation or biotechnology, there are factors that have a proportionately greater impact on profitability; these are shown as footnote a in the table. Analysis of profitability begins with the earliest germination of an idea that might result in a product. Enthusiasm and money spent may be very high at first; as the profitability model becomes focused, both enthusiasm and funds dwindle. After a company has completed a few projects, it may be possible to recognize a systematic bias in preparation of profitability models. In other words, a sensitivity analysis is a normal accompaniment to a profitability calculation. The point made is that profitability calculations can be made for the more mundane fermentation processes before embarking on a development project.
