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 Introduction 0:38 Why Formation Bio? Origins and Mission 1:12 The Real Bottleneck: Clinical Development 4:56 Formation Bio’s Business Model 7:50 Picking Winners: The Art and Science of Drug Selection 11:54 First-in-Class vs. Best-in-Class Strategies 14:04 Overcoming Regulatory and Market Challenges 17:26 The Stakes: Can We Approve More Drugs? 19:07 How Formation Bio Cuts Cost and Time 21:43 AI’s Role in Drug Development 25:10 The Future: From 50 to 500 Drug Approvals? 35:18 Global Competition: The Rise of China 39:28 The Path Forward: Data, Regulation, and Access 41:47 Conclusion: Realizing the AI Revolution in Pharma Resources: Find Ben on X: https://x.com/BenjamineYLiu Find Jorge on X: https://x.com/JorgeCondeBio Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends! 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.