Joshua Hattem co-wrote this blog post with Emily Mandell.
The pharma industry faces a growing problem: The return on development investment is declining. The industry is compensating by pivoting to the next disease area (such as NASH) and technological frontiers (like cell and gene therapy). Pharma leaders may be disappointed if they believe that they can fix the problem by simply adding products to their pipeline that target these future opportunities. Take Gilead, which recently had to write down $820 million of its Kite Pharma acquisition as it cut Kite’s leading cell therapy for multiple myeloma. According to FierceBiotech, this decision to terminate the CAR-T’s clinical development “reflects the increasing competition in the anti-BCMA category.”