Dr. Jeremy Levin on the Mismatch Between Biotech and Capital Markets

In an interview with Pharmaceutical Executive, Dr. Jeremy Levin, author of 'Biotech in the Balance,' discusses the structural challenges facing the biotechnology industry. Amidst turbulent changes in US health agency leadership, including reports that Marty Makary is out as FDA head, Levin argues that the biotech sector is fundamentally mismatched with current capital market structures. He explains that unlike digital products, which can be launched and tweaked quickly, biotech requires a decade-long development timeline. This long timescale is incompatible with stock markets designed for rapid returns, leading to severe penalties for companies when scientific adjustments are needed. Levin emphasizes that biotech should be recognized as a national strategic asset, noting that the industry produces 70% of the medicines sold by large pharmaceutical companies. He calls for policy changes to address misinformation, reduce the politicization of medical research, and create a financial environment that supports the unique long-term risks inherent in drug development.