Successful biotech leadership requires a clear decision-making hierarchy. Dr. Bahija Jallal advocates for a framework where patient welfare is paramount, followed by scientific rigor. Financial success is treated as a byproduct of excelling in the first two areas, not the primary goal.
Related Insights
The 20th-century view of shareholder primacy is flawed. By focusing first on creating wins for all stakeholders—customers, employees, suppliers, and society—companies build a sustainable, beloved enterprise that paradoxically delivers superior returns to shareholders in the long run.
Dr. Bahija Jallal's lifelong pursuit of scientific understanding originated from a childhood tragedy. The death of her father due to a medical error fueled her persistent "why" questions, transforming a desire for answers into a mission to develop better medicines for patients.
A CEO's primary role differs fundamentally based on company type. In an asset-centric biotech, the CEO must act as a hands-on program manager, micromanaging execution. In a platform company, the CEO must be deeply embedded in the science to predict and leverage the technology's long-term trajectory.
Nubar Afayan argues against the popular notion of entrepreneurship as a random, "gamey" process of wins and losses. He advocates for transforming it into a serious profession with systematic processes, especially for critical sectors like healthcare and climate, where a simple "shots on goal" approach is insufficient.
In the rare disease space, success hinges on deep patient community engagement. Smaller, nimbler biotechs often excel at creating these essential personal ties, giving them a significant advantage over larger pharmaceutical companies.
A crucial piece of advice for biotech founders is to interact with patients as early as possible. This 'patient first' approach helps uncover unmet needs in their treatment journey, providing a more powerful and differentiated perspective than focusing solely on the scientific or commercial landscape.
A biotech investor's role mirrors that of a record producer by identifying brilliant talent (scientists) who may lack commercial experience. The investor provides the capital, structure, and guidance needed to translate raw scientific innovation into a commercially successful product.
While success is celebrated publicly, some of the best leadership happens privately when a CEO makes the tough, candid call to shut down a program or company due to unfavorable data. This "truth-seeking" decision, often against their personal interest, is a hallmark of excellence.
The industry over-celebrates financial winners. Equal praise should be given to leaders who, despite poor financial outcomes, successfully pioneer new scientific ground or persevere to get a drug approved for a high unmet need. Their work provides crucial groundwork for future successes.
This framework structures decision-making by prioritizing three hierarchical layers: 1) Mission (the customer/purpose), 2) Team (the business's financial health), and 3) Self (individual skills and passions). It provides a common language for debating choices and ensuring personal desires don't override the mission or business viability.
