How to Build This Generation's Big Pharma Company

Drug discovery has doubled the flow of candidates, but approvals remain roughly flat. The constraint is development, not discovery. In this episode, a16z General Partner, Jorge Conde talks with Formation Bio cofounder and CEO Ben Liu about building a modern pharma company around clinical execution. They discuss Formation Bio’s hub-and-spoke model for acquiring and advancing assets, how AI compresses trial timelines and costs, picking winners, regulatory strategy, and what it would take to move from about 50 approvals a year to many more. They also touch on global competition and why clinical proof still drives value in today’s market.\ Timecodes: 0:00 Introduction0:38 Why Formation Bio? Origins and Mission1:12 The Real Bottleneck: Clinical Development4:56 Formation Bio’s Business Model7:50 Picking Winners: The Art and Science of Drug Selection11:54 First-in-Class vs. Best-in-Class Strategies14:04 Overcoming Regulatory and Market Challenges17:26 The Stakes: Can We Approve More Drugs?19:07 How Formation Bio Cuts Cost and Time21:43 AI’s Role in Drug Development25:10 The Future: From 50 to 500 Drug Approvals?35:18 Global Competition: The Rise of China39:28 The Path Forward: Data, Regulation, and Access41:47 Conclusion: Realizing the AI Revolution in Pharma Resources: Find Ben on X: https://x.com/BenjamineYLiuFind Jorge on X: https://x.com/JorgeCondeBio Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends!Find a16z on X: https://x.com/a16zFind a16z on LinkedIn: https://www.linkedin.com/company/a16zListen to the Raising Health Podcast on Spotify: https://open.spotify.com/show/4fjb8YTzHDuPBgDXc3ElkRListen to the Raising Health Podcast  Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/raising-health/id1529318900Follow our host: https://x.com/eriktorenbergPlease note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.