New financing and business models to accelerate the development of novel therapeutics

Abstract

Many obstacles contribute to the uncertainty and risk associated with early drug development, leading to the "valley of death" in which promising drug candidates experience difficulties in reaching the market. These challenges have serious consequences for patient populations facing significant unmet medical needs. In this paper, we highlight three models that offer innovative financing mechanisms or new business models for early stage biopharmaceutical assets. Specifically, we evaluate and profile examples of venture philanthropy and academic-industry partnerships as sources of financial capital for early stage assets. In addition, we identify a "one-disease" business model in biotechnology that can mitigate risk and accelerate the translation of biomedical research into novel therapeutics. The three examples highlight the potential for creative mission-driven models to speed up drug development and provide capital in the earliest, and often riskiest, stages of drug development. These models are collaborative and leverage the expertise of the various stakeholders in the process, including patient advocates, private sector drug developers, and academic researchers.