Transformative science, tech and talent unlock life science funding

Life science companies need to stand out to secure funding for increasingly complex development programs. Jo?o Ribas, Principal at Novo Holdings, says it’s the right skills that will enable the next wave of scientific innovation.

It’s an exciting time for the life sciences industry.?Advanced therapies?are transforming treatment options, while technologies such as artificial intelligence (AI) and machine learning are revolutionising drug discovery. But life science companies are not having an easy time. Venture Capital?funding has decreased in the past couple of years. At the same time, rising drug development costs make investment essential; especially for smaller biotech companies with limited resources.

Promisingly, “we’re starting to see the negativity around market confidence reduce,” says Jo?o Ribas, Principal in the Seed Investments team at Novo Holdings, the world-leading life science investor. However, the investment landscape is fundamentally different to a decade ago. “The days of having an idea on a napkin and being able to go public the following week are gone,” Ribas continues.

How can life science companies attract investment in a more competitive market?

Investors are looking for innovative life science companies

Companies pioneering novel scientific approaches and effectively using technology during development are interesting to investors. “At the end of the day, great science and technologies are still being financed,” says Ribas.

The crux, according to Ribas, is to show investors that your company “solves a real problem”.

“It’s so simple, yet so many times we see companies trying to reinvent the wheel. If you want to raise capital, you should look at the clinical landscape, identify unmet needs, and use novel science and technologies to develop a treatment in these areas.”

For Novo Holdings, advanced therapies and machine learning-enabled drug discovery are two particularly hot topics that offer such solutions. By augmenting, repairing and regenerating cells, genes and tissues, advanced therapies can treat the root cause of many diseases. This curative potential is a significant step forward in areas where existing treatments can only manage symptoms.

Meanwhile, machine learning can?reduce reliance on experimental efforts?in drug discovery by identifying targets that have a higher likelihood of success. Not only does this save R&D time and costs, but it mitigates the risk of drug candidate failure: an attractive prospect for potential investors.

However, in these emerging areas companies will likely not have the right teams in place to deliver on potential. What does this mean for investment prospects?

It’s all about the people, but they are short in supply.

The right people are critical to securing investment, says Ribas. “Capital and science don’t do anything on their own – it's people that make progress.”

One of the caveats of innovation is the lack of existing blueprints for companies to follow in their drug development. With this comes risk. However, Ribas notes that having the right team can provide reassurance that challenges will be overcome.

“Life science companies are rarely going to avoid setbacks. As an investor, I need to understand: can these people solve problems? Are they the right team to take the company further?”

But talent shortages could hamper progress. In particular, advanced therapies need specialised skillsets that are high in demand but short in supply, and competition to secure the right people is fierce. Similar issues are arising as science and technology come together, with demand for data scientists expected to be four times higer than supply.

Thankfully, the industry and governments are responding, says Ribas. “The UK Cell and Gene Therapy Catapult?is training many people in advanced therapies, who then move to different countries and spread across the industry. There are also fellowships?available in the US for biologists to train in data science.”

These initiatives will feed the industry with more talent, but it will take time. Ribas acknowledges that investors can play their part and support early-stage companies in the meantime. As an example, Novo Holdings established an 'entrepreneurs in residence'?(EiR) programme, where experienced biopharma professionals are placed into emerging companies to fill skills gaps.

However, opportunities like this are not universally available. In a talent drought, what else can companies do to develop their workforces and showcase value to investors?

Innovative technologies call for innovative upskilling.

It is unrealistic to expect that talent will be available at the time you need it, especially where companies require specific expertise in novel approaches.

“Statistically speaking, the odds that someone who exactly fits the specialist profile you’re looking to recruit is available at the moment you need it, are slim,” says Ribas.

For this reason, Ribas believes upskilling is critical. “What companies need to do instead, is think: what does it take to grow our existing people from A to B?”

Fostering workforce collaboration opportunities is one way to showcase a commitment to upskilling. For example, machine learning in drug discovery requires both scientific and data science skillsets to be successful.

“Having interdisciplinary teams means people are exposed to areas outside of their core knowledge,” says Ribas. “Then you have cross-pollination between the different areas and not just siloed work streams.”

Employee development will be nothing but positive for life science employers. Increasing workforce expertise will accelerate drug development progress and increase likelihood of further investment. But it will also improve morale. People who are happier in their roles are more likely to commit to their work, and investors value this.

“Respect, train and grow your people, and they will do great work. We want workforces that buy into the vision and mission of their companies,” says Ribas.

How to make your team investment ready:

1. Focus on science and technology that solves a real-world problem. Then, consider the talent you need to bring this to fruition.
2. Look at industry initiatives that are training the next wave of life science professionals and recruit from these pools.
3. Bring skillsets together into interdisciplinary teams, especially in areas where science and technology are becoming more intertwined.
4. Where talent competition is most fierce, focus on upskilling.

Do your teams have the right skills?

Find out how Real Staffing can help you find the life sciences talent of tomorrow.