Qualities of a Successful Biotech CEO: What Executive Search Consultants Look For

Biotech CEOs straddle two worlds: science and business.??

They must decode biological healthcare solutions while deciphering market trends, often with billions of dollars and countless lives hanging in the balance.??

Finding leaders who excel in both realms is a challenge that keeps many boards of directors up at night.?

Finding Top Biotech CEOs is Difficult

In 2022, Biogen spent months searching for a new CEO. The hunt ended with the appointment of Christopher Viehbacher , but not before the company’s stock had shown notable variability and speculation had run rampant in industry circles. This high-profile search proved an inarguable fact: finding a world-class leader for a biotech firm is extraordinarily challenging.?

But what exactly makes top biotech leaders so special? What elusive qualities do executive search consultants look for when they’re tasked with finding the next Henri Termeer or George Scangos???

The Top 6 Skills Biotech CEOs Need to Succeed

Biotech companies face a whole host of challenges that are unique to their industry, from proving technical feasibility to achieving market adoption, regardless of their size or stage. This high-risk, high-reward environment demands a special breed of CEO.?

1. Scientific Acumen

A scientific background is often valued in the biotech industry, but it’s not always a prerequisite for leadership roles. A study of 18 of the world’s leading life science executives found that only 5 held advanced degrees in medicine or life sciences. Biotech CEOs come from diverse educational backgrounds too, including business, law, finance, and other fields alongside scientific disciplines.?

Executive recruiters look for leaders who can speak the language of science fluently. They need to understand the intricacies of their company’s technology platform and be able to engage meaningfully with scientific staff and potential partners.?

2. Strategic Vision and Adaptability

Biotech CEOs must be able to maintain a clear strategic vision while staying adaptable to rapidly changing scientific and market conditions.??

Case in point: Stéphane Bancel, CEO of Moderna . When the COVID-19 pandemic hit, Bancel quickly pivoted the company’s mRNA technology platform to develop a vaccine. This strategic shift not only contributed to global health efforts but also catapulted Moderna from a clinical-stage biotech company to a commercial powerhouse. This can be seen in the fact that they made 18.5 billion USD in revenue in 2021, compared to 803 million USD in 2020.?

3. Financial Acumen and Fundraising Prowess

Ask any biotech CEO, and they’ll tell you: biotech is expensive. That’s why CEOs must be skilled at getting funding and managing it. In 2020, biotech companies in the U.S. and Europe raised nearly 19 billion USD from investors. This figure hints at the immense effort biotech CEOs put into securing funding.?

Jason Kelly, co-founder and CEO of Ginkgo Bioworks, is a good example of how an effective fundraising process can lead to success for a biotech CEO. Kelly’s fundraising skills were evident in Ginkgo’s successful private funding rounds, raising over 797 million USD before going public. His strategic vision culminated in a SPAC merger in 2021 that valued the company at 15 billion USD . This financial milestone provided capital for advancing Ginkgo’s “cell programming” platform.??

4. Regulatory Navigation Skills?

The ability to deal with a veritable maze of regulations, laws, and rules is an important skill for a successful biotech CEO to have. Regulatory agencies focus on two key areas: risk assessment and risk management . Biotech CEOs must be good at understanding and addressing both aspects to ensure their products meet necessary standards and reach the market efficiently.?

A good example of a biotech CEO getting regulatory compliance right is Serge Saxonov . Saxonov, co-founder and CEO of 10x Genomics, has led the company since its inception in 2012. Under his leadership, 10x Genomics has successfully launched several groundbreaking genomics and single-cell analysis technologies. Saxonov’s vision and strategy have been key to 10x Genomics’ growth and have enabled the company to provide researchers with advanced tools for high-resolution biological analysis.?

5. Innovation Mindset

Biotech CEOs must build a culture of innovation brick by brick within their organizations. To do so, they must lay a foundation that first attracts top talent and then gives them enough freedom to run with their ideas. This is crucial not just because biotech companies rely on creating new technologies and identifying unmet needs, but also because innovation is directly tied to profitability in this sector. In fact, a study found that the median return on equity in the cancer biotech industry has increased from 11 percent to 15 percent due to innovation.?

John Maraganore, former CEO of Alnylam Pharmaceuticals, is a good example of the innovative mindset that biotech CEOs need. Under Maraganore’s leadership , Alnylam led the development of RNA interference (RNAi) therapeutics, an entirely new class of medicines . His ability to breed innovation led Alnylam to become the first company to receive FDA approval for an RNAi therapeutic in 2018.?

Another standout in biotech innovation is Dr. U?ur ?ahin , co-founder and CEO of BioNTech . ?ahin’s scientific know-how and foresight led to the rapid development of one of the first COVID-19 vaccines. By redirecting BioNTech’s mRNA technology from cancer research to fighting a global pandemic, ?ahin showed the flexibility and creative thinking that top biotech CEOs need. His leadership in partnering with Pfizer not only helped save lives worldwide but also made BioNTech a major player in the biotech field.?

6. Global Perspective

As biotech becomes increasingly global, CEOs must have a broad, international outlook to succeed. The global biotechnology market is projected to grow from 1.55 trillion USD in 2024 to 4.61 trillion USD by 2034 , at a CAGR of 11.5%. While the United States leads with 39% of biotech patents and the EU has an 18% share in 2020, emerging markets are gaining importance, with China holding a 10% share in 2020.?

Pascal Soriot, CEO of AstraZeneca, exemplifies the global mindset needed in this field. Under his leadership, AstraZeneca aims to nearly double its sales to 80 billion USD by 2030, focusing on international markets. Soriot has successfully managed global collaborations before, including the high-profile COVID-19 vaccine development with Oxford University, which led to worldwide distribution of billions of vaccine doses.?

The Future of Biotech Depends on its Leadership

As the industry continues to grow and evolve, and as biotechnology leaps forward, the qualities that define successful biotech CEOs may change, too. However, the core attributes of scientific understanding, strategic vision, financial acumen, regulatory savvy, an innovative mindset, and a global outlook are likely to remain essential for biotech CEOs no matter how the industry changes over time.?

For aspiring biotech leaders, developing these qualities and learning from the examples set by successful CEOs in the field can pave the way for future success.?

About the Author

Dietrich Hauffe, Ph.D. , is a Partner at Stanton Chase Düsseldorf , Global Subsector Leader for Biotechnology , and Global Sector Leader for Life Sciences and Healthcare . With a doctorate in biochemistry and years of experience in biotech leadership, Dietrich specializes in executive searches for the analytical industry, biotechnology, biopharmaceuticals, diagnostics, and medical devices. His expertise extends to functional areas including marketing and sales, R&D, operations, and medical affairs. Having spent over a decade in the U.S.A. and Canada, Dietrich brings a truly international perspective to his work in the biotech industry.?