By Sougato Das, President and COO, Life Science Nation (LSN)
The hot topic is that government grants are fundamentally broken in Life Science. RFK Jr. is calling out NIH-funded studies as problematic and seeks to fix them by having Senate committees review proposals, restructuring and/or laying off NIH staff, and reducing infectious disease research while increasing chronic disease funding.
A 2023 study showed that nearly all FDA New Drug Applications from 2010 to 2019 relied on NIH funding in the early stages. Yet the biotech startup failure rate is 90%, according to Health Tech World and CBI Insights. So what is the disconnect, and what are the lessons Life Science Nation has learned from 12 years of helping startups get funded? One of the factors that can contribute to this failure rate: scientists and academics control the selection and evaluation process, and they often remain in the mix long after their expertise is most relevant. While they play a crucial role in assessing technical feasibility, when should they step aside when plotting the journey to commercialization?
The problem isn’t just that academic scientists struggle with translating discoveries into commercial products – such as navigating the FDA, clinical trials, and regulatory approvals – but that grant programs themselves fail to address the fundamentals essential for success. Instead of equipping grantees with the real-world skills needed for sales, business development, and strategic partnering, the “commercialization training” typically amounts to little more than teaching them how to prepare for a partnering event and deliver a 30-minute pitch deck.
This is the equivalent of bringing a knife to a gunfight. Securing funding and forming industry partnerships requires far more than a polished presentation. It demands a deep understanding of market positioning, deal structuring, sales strategy, and long-term capital planning – areas where most scientific founders are left unprepared. Until grant programs integrate commercialization expertise and ensure leadership transitions to business professionals at the right stage, billions in non-dilutive funding will continue to be wasted on technologies that never reach patients.
Innovative funding strategies that bridge the gap between academic research and commercial viability should be explored. Additionally, creating a supportive ecosystem that connects scientists with investors, industry partners, and mentors with funding and partnering expertise is crucial to guiding them through the commercialization process.
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Great insight! It seems you answered the question. Yes, it is broken.