In order for biotech companies to secure the funding necessary to sustain growth, they must do the hard work of convincing investors that their future will be profitable enough to invest in today.
Consistent and predictable funding ensures smooth, legal daily operations that keep growth on track. But as growth continues, continued availability of product to the public also correlates to continued risk, increasing in relation to that growth. More customers means more potential claimants. Regulatory bodies, such as the FDA, pay more attention to larger businesses, necessitating the requirement for more comprehensive insurance.