The traditional biotech venture capital model that has funded successful drug development for decades is facing disruption in 2026, according to reporter Allison DeAngelis who interviewed about two dozen biotech VCs and limited partners. The established formula combining U.S. university research, veteran pharmaceutical executives, and tens of millions of dollars is under pressure from multiple forces: Chinese scientists conducting innovative research faster and at lower costs than U.S. counterparts, and artificial intelligence drawing investment dollars away from biotech. The disruption follows a Covid-era rally and subsequent decline in the biotech industry, forcing venture capitalists to reconsider their traditional funding strategies despite the model's historical success in producing new medicines, companies, and financial returns.
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