David Stíbal: We believe a startup is one of the best paths nowadays to develop interesting technologies beyond the academic level
How complex is the path to a new drug? Why do licenses for Czech drugs end up abroad? What are the most common issues currently faced by biotech startups? David Stíbal, Vice Director of the biotech incubator and venture builder i&i Prague, s.r.o., reflects on these and other questions related to the commercialization of scientific discoveries.
How complex is the path to a new drug today?
The path to a new drug is very complex and risky, and in some respects, this is even more true today than it was in the past. For example, if we were to calculate the current cost of developing a new drug from initial trials to the final "pill", statistics show it would approach one billion dollars. This figure includes also the costs of all unsuccessful candidates within the development program, preclinical and clinical experiments, production, marketing, and much more. Pharmaceutical companies then need to recoup this investment from the sales of the drugs that make it all the way to market.
What drugs are in the highest demand today?
According to the list of the most successful drugs (known as "blockbusters," i.e., drugs that generate at least one billion USD annually) for 2023, the most sought-after drugs are GLP-1 agonists, such as anti-obesity drugs (Ozempic, Mounjaro, etc.), cancer-fighting antibodies (e.g., Keytruda from MSD), immunologic drugs (Humira, Stelara, etc.), or HIV medication, incidentally the one developed by Professor Holý’s team at the Institute of Organic Chemistry and Biochemistry in the late 20th century (Tenofovir alafenamide, marketed by Gilead Sciences).
Many licenses for Czech drugs are sold abroad. Is there any way to change that?
Licenses are typically sold at an early development stage to larger companies that have the capacity to bring such programs through advanced clinical trials and to market. In our field, this is usually the domain of major pharmaceutical companies capable of bearing the high costs mentioned earlier. The idea of having a drug, invented and developed in the Czech Republic, also manufactured here is certainly appealing. However, until a major pharmaceutical company transfers its R&D or manufacturing facility to the Czech Republic, or until a mid- to large-sized pharmaceutical company emerges here, this scenario is hard to imagine.
You support startups focused on developing new drugs or diagnostic methods. Are there any positive trends in this segment in the Czech Republic?
Through our work, we see a positive trend, especially in the growing number of startups and the willingness of scientists and university employees to discuss commercialization and consider developing their inventions beyond scientific publications or patents. We’re delighted by this, as we believe a startup is one of the best paths nowadays to develop interesting technologies beyond the academic level. However, it's also worth noting that the startup mentality in the Czech Republic, particularly in our field, is not yet as developed as it is in more advanced countries.
What are the biggest challenges these startups face today?
The biggest issue, globally, is the current lack of investment capital and, more specifically, the scarcity of investors willing to support new, high-risk projects. This is especially true when compared to the “COVID years” of 2019-2021, when funds were released more readily, with investors supporting projects that could, among other things, respond immediately to the crisis. The situation is different now: investors are more cautious about where they allocate their funds, partly because they are reserving capital to support their existing portfolio companies.
A startup may be a suitable path, where scientists and managers can work together to further develop the technology until it is relevant for direct licensing to a larger firm.
DAVID STÍBAL
VICE DIRECTOR AT i&i PRAGUE
What did you think of this year’s Prague.bio Conference?
I consider the event a great success. It’s impressive how the Prague.bio association managed to organize a high-quality conference with such a small team. Similar events are held fairly regularly across Europe, some of which i&i Prague likes to attend. However, there are relatively few conferences focused on such early-stage technologies, as was the case with Prague.bio. We were also pleased with the scientifically oriented program and high attendance, which shows that such an event is needed in the Czech Republic and is appreciated by both academic and industry players.
Are there any new figures in today’s biomedicine who might follow in Professor Holý's footsteps?
Repeating such an achievement will be challenging but not impossible. To make it happen, however, we need to build a more robust infrastructure that can help scientists navigate the very complex process of bringing their ideas to fruition. Our incubator aims to be one of the pieces that form this mosaic.
What is the best way to commercialize the results of science and research?
The answer to this question depends on how advanced the result is and how well it aligns with the current market needs. If it is possible to directly connect with a larger company and license the result to them, this is a relatively fast way to transfer the technology into practice. If that’s not possible, a startup may be a suitable path, where scientists and managers can work together to further develop the technology until it is relevant for direct licensing to a larger firm. Alternatively, developing the technology all the way to market can also be considered, although this is more of an exception in our field.
David Stíbal is the Managing Director of the biotech incubator i&i Prague. He evaluates the business potential of scientific projects, establishes and initially manages startups, and works on the long-term development of projects all the way to their successful commercialization. He completed his bachelor’s and master’s degrees at the University of Chemistry and Technology in Prague, earned a Ph.D. from the University of Neuchâtel in Switzerland, and conducted postdoctoral research at the prestigious Massachusetts Institute of Technology (MIT).
Czech version of the interview was published in Ekonomický magazín.
Author: Martin Kovalčík