SCIENCE IN THE NEWS DAILY

Financial Growing Pains of a Biotech

from the Scientist (Registration Required)

A biotech consultant had reviewed a young biotech's development plan and presented the company with several recommendations. It was clear to this consultant that the company was moving prematurely into a human proof-of-concept study and needed more data to define the appropriate dose.

Several weeks later, she was astonished to hear from the company's chief medical officer that while he had personally agreed with her, the company had decided to proceed directly to the next stage of development without further testing, because even at the "wrong" dose it would be able to raise the money needed to stay afloat.

It was with sadness, but no great surprise, that she read a year later that the trial had failed. The company was said to be "evaluating its strategic options." Welcome to the reality of financially driven drug development!