Reflecting on his PhD, Terry Rosen emphasizes that experiments that fail are often the most telling. Instead of discarding negative results, scientists should analyze them deeply. Understanding *why* something didn't work provides critical insights that are essential for iteration and eventual success.
Arcus's HIF2 inhibitor strategy focuses on a 'TKI-sparing' regimen, which delays the need for more toxic therapies. This offers patients a significantly better quality of life for several years. This value proposition creates a distinct therapeutic category, not just an incremental improvement over competitors.
Terry Rosen recounts how his high school mentor taught critical thinking by asking the class to heat water to 115°C. This impossible task forced students to rely on observation and scientific principles over blindly following instructions, instilling a foundational mindset for a career in science.
Arcus's strategy isn't to find novel targets, but to leverage its small-molecule expertise on validated targets that are difficult to drug. This de-risks the biology and creates a competitive moat based on technical execution, allowing them to develop a clearly better molecule against incumbents like Merck.
Terry Rosen saw an opportunity as big pharma culturally shifted from deep R&D towards an asset-management model. He founded Arcus to fill this gap, building a company focused on the small molecule drug discovery expertise that the industry was starting to abandon, creating a counter-cyclical advantage.
Terry Rosen advises against the 'single asset' biotech model, advocating for building a sustainable discovery engine. To fund this, founders must embrace strategic collaborations, even if it means giving up some ownership. This mindset of sharing in a larger, de-risked success is more viable than betting everything on one program.
Arcus navigated its capital-intensive early years by using strategic collaborations to bring in over $1 billion in largely non-dilutive funding. This approach allowed the company to reach late-stage clinical milestones and generate valuable data, bridging the gap to a point where public market investors could see tangible value.