Unlocking Opportunity in Existing Drugs:
Potentially effective drugs already exist, but they’re not getting into clinical trials for the diseases where they can do the most good. We’re here to change that.
Sufferers of deadly, unsolved cancers and neurodegenerative diseases don’t have decades to wait for the pathogenesis of their conditions to be finally revealed and then translated into a roadmap for novel therapies. Right now, several drugs with acknowledged potential sit unexamined, locked out of clinical trial by the belief that their development is too expensive given the higher probability of failure in these difficult diseases. It’s our mission to re-enable those opportunities.
Enabling the Opportunities:
PCUT BioPartners acquires medically promising drug programs that other companies have deprioritzed. Our venture partnerships allow us to clinically develop them at much lower cost.
PCUT BioPartners acquires medically promising drug programs that other companies have deprioritized for non-health related reasons. The venture platform draws from a network of experienced product development leaders who collectively cover a broad spectrum of drug chemistry and therapeutic pathways. PCUT BioPartners forms a specialized product development team around each asset it undertakes, pays the venture’s breakeven costs, and spins off the partnership as a product-specific company. Changing the ownership and cost structure means reductions in front-end risk and can enable investment in promising opportunities.
Low Cost, High Upside Ventures:
Every existing drug with potential efficacy in diseases with unmet medical need is a breakthrough opportunity. The venture platform turns this into cheap optionality for investors.
Risk is another word for uncertainty; it does not mean magnitude of loss. In that context, all development in this class of diseases is high risk, due the fact that unsolved diseases have no definite pathway to target and because trial endpoints may not properly reflect therapeutic effect. But such ventures can still have low Value at Risk (VaR); which is the probability-adjusted magnitude of loss in a negative event. We lower VaR by spending only the cash needed to cover variable project costs, plus a small kicker for each operating partner. In a true risk-sharing partnership, it means we don’t pay for salaries, overhead, or amortization of fixed costs. There is no burn rate. The platform not only slides back on the risk/return frontier by sharing some ownership with operating partners. But it also changes the shape of the risk/return frontier by cutting waste and increasing investors’ rate of return.