The Next Biopharma Business Model

By Suzanne Elvidge, Contributing Writer
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By Suzanne Elvidge, Life Science Leader magazine

One of the biggest costs for the biopharma industry is that of drug R&D. “I’ve worked in the biopharma industry for more than 25 years, and I felt that the R&D sector was underperforming,” says Ulrich Grau, Ph.D., president, CEO, and cofounder of Lux Biosciences. “In my days at Hoechst Marion Roussel, one of the predecessor companies of sanofi-aventis, I was responsible for six or seven products in the company’s late-stage pipeline, with an annual budget of around $1B. As each project stays in this phase for about three years, this works out to be about half a billion dollars per project.”