Lyman BioPharma Consulting LLC

Advice and Resources for the Biotech Industry

Advice and Resources for the Biotech Industry

Stacks Image 1108

Hollywood and BioPharma: Differentiated by Unique Economic Models

In my previous post, I detailed numerous similarities between the pharmaceutical and film industries. Now it’s time to point out the substantial differences between these two businesses that illustrate their different economic consumption and pricing models.

Production Costs - Big Barriers to Entry in Pharma, but Not Film
Nobody’s producing drugs in their basement that are going to earn them a ton of money. Okay, let me rephrase that. Nobody’s producing legal pharmaceuticals in their basement that are going to earn them big bucks. Creating prescription drugs is a very expensive enterprise. The cost of bringing a new drug to market has been estimated by the Tufts Center for the Study of Drug Development to be about $2.6 billion. That’s a huge hurdle to making money. There’s no getting around extensive research, filing multiple patents, complicated manufacturing steps, expensive clinical trials, and detailed regulatory and FDA filing requirements. How long might it take just to recoup those costs? Let’s return to my previously cited example of a very poor selling drug. Seattle’s CTI BioPharma sold only $3.47 M of their non-Hodgkin disease/B-cell lymphoma drug Pixuvri worldwide in 2015 (all sales were in Europe). If it cost the company the current industry “average” of $2.6 billion to develop it (which it didn’t), it would take about 749 years just to recoup that money, based on 2015 revenues. And that’s without showing a profit. It’s a pretty safe bet this drug will never recapture its development costs no matter what they were.



Consequences: In a Post-Truth World, Scientific Progress Goes Boink

Science is a search for truth. I work in the biosciences, where it’s all about understanding the mysteries of life. Our days are built around generating hypotheses and then working to accumulate sufficient data to either prove or disprove them. As scientists, we enjoy problem solving and finding out new things, both expected and unexpected. Our careers are (or should be) built around always doing something novel, because once something hidden is revealed, it’s time to move on to tackling the next riddle. Some of us relish a focus on basic science, while others work in the realm of innovating practical applications for what we (and others) have discovered. One could hardly ask for a more rewarding vocation than that.

Why Even Superman Would Fear Donald Trump

Baby Boomers know that Superman, the world’s most famous superhero,
“…fights a never-ending battle for truth, justice, and the American way!” These words opened the 1950’s Adventures of Superman TV series that ran from 1952-1958. The introduction on the 1940’s radio series of the same name, however, was a bit different, “Superman–defender of law and order, champion of equal rights, valiant, courageous fighter against the forces of hate and prejudice, who….fights a never-ending battle for truth and justice.” The words, “the American way” were added to this phrase as part of the animated Fleischer Studios Superman serials in 1942, when the U.S. was deeply embroiled in WWII. The three extra words were dropped from the radio broadcasts when the war ended, but were revived in the TV show as well as the 1978 Superman film.

Not Accepting the Outcome When the (FDA) Vote Doesn’t Go Your Way

Donald Trump’s recent pronouncement that he would not necessarily accept the results of the presidential election elicited an avalanche of angst across America. Such a move would threaten the very pillars of democracy that have been in effect for some 240 years. While Trump and his supporters will undoubtedly have feelings of disappointment, disillusionment, and anger if he loses (which is looking increasingly likely), challenging the outcome itself would be unprecedented. What would Donald Trump do if he were CEO of a biopharma company that had its drug rejected by the FDA?

The Covenant Between BioPharma Companies and Their Customers


How Can You Make Money in Biotech If Only One In Ten Companies Turns A Profit?

It’s that time of year when we can finally sit down to enjoy the long awaited knock down, drag out battle of some national heavyweights. No, I’m not talking about Clinton vs. Trump; that fight may be too painful to watch. I’m talking about the upcoming clash between two battle-tested opponents. This fight pits lobbyists representing “Usurious” insurance companies against those for “Greedy” biotech and pharma firms. In the battle of Goliath vs. Goliath, the razor arrows have been sharpened and the lines in the sand have already been drawn.

Can Changing A Biotech Company’s Name Really Alter Its Fortunes?

Shakespeare tells us that a rose, by any other name, would smell as sweet. Its alluring fragrance is a quality independent of what we call it. Is the same thing true in the land of biotech? Would changing its name really free a biotech company from an established reputation as a substandard performer? Or is changing the name of a company simply pretending to solve a problem, equivalent to putting air in one of the tires when the check engine light comes on?


Following an enthusiastic response to my

Which Bush Had The Greatest Impact On American Science?




Is this really true?

Why Sci-Hub Won’t Lead to the Downfall of Science Publishers


Cancer Immunotherapy: It’s (Almost) All About the Combo
