How to Build This Generation's Big Pharma Company
Raising Health
Why Clinical Trials Are So Expensive
Ben breaks down CRO cost-plus incentives and operational inefficiencies that inflate trial costs and timelines.
Drug discovery has doubled the flow of candidates, but approvals remain roughly flat. The constraint is development, not discovery.
In this episode, a16z General Partner, Jorge Conde talks with Formation Bio cofounder and CEO Ben Liu about building a modern pharma company around clinical execution. They discuss Formation Bio’s hub-and-spoke model for acquiring and advancing assets, how AI compresses trial timelines and costs, picking winners, regulatory strategy, and what it would take to move from about 50 approvals a year to many more. They also touch on global competition and why clinical proof still drives value in today’s market.\
Timecodes:
0:00 Introduction
0:38 Why Formation Bio? Origins and Mission
1:12 The Real Bottleneck: Clinical Development
4:56 Formation Bio’s Business Model
7:50 Picking Winners: The Art and Science of Drug Selection
11:54 First-in-Class vs. Best-in-Class Strategies
14:04 Overcoming Regulatory and Market Challenges
17:26 The Stakes: Can We Approve More Drugs?
19:07 How Formation Bio Cuts Cost and Time
21:43 AI’s Role in Drug Development
25:10 The Future: From 50 to 500 Drug Approvals?
35:18 Global Competition: The Rise of China
39:28 The Path Forward: Data, Regulation, and Access
41:47 Conclusion: Realizing the AI Revolution in Pharma
Resources:
Find Ben on X: https://x.com/BenjamineYLiu
Find Jorge on X: https://x.com/JorgeCondeBio
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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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