By Sree Kant
Biotech bubbles and subsequent downturns warrant a critical look at the structure of the biotech industry — how it is financed and operated. Unlike in the tech industry, most private biotech companies raising significant levels of cash have been formed by venture capitalists or professional biotech building shops. This comes with a largely formulaic approach of “two years to IPO” from inception, which in a bull market could deliver near-term return on VC investment but not necessarily longer-term value. Downturns like the current one highlight the need to move from an industry built for the next exit to one that’s built to benefit patients by prioritizing the best science and sustainable drug innovation. This will require a cultural shift, and I argue a structural one as well, toward more founder-led biotech companies.