day 8 part 1
🧠 Big Picture: What This Lecture Is About
This lecture explains how modern drug discovery and development works, especially in a large pharmaceutical company context. The key themes are:
- Why certain diseases are targeted
- How drugs are developed from idea → market
- Why it is extremely expensive and risky
- How science, business, and logistics are tightly connected
🧬 1. Disease Focus & Why It Matters
Core idea:
Drug development is not just scientific, it is driven by:
- Disease prevalence
- Societal cost
- Market potential
- Biological feasibility
Major disease areas:
- Diabetes
- Obesity
- Rare diseases
Key insight:
These are interconnected diseases (comorbidities):
- Obesity → diabetes, cardiovascular disease, liver disease
- Treating one often affects others
👉 So modern drug design aims to:
Not just treat a disease, but reduce overall health burden
⚠️ 2. The Challenge of Rare Diseases
Important concept:
- ~7000 rare diseases exist
- Affect ~350 million people globally
- BUT: very few patients per disease
Problem:
- Drug cost ≈ same as common diseases (~€2B)
- Few patients → very expensive treatment per person
Example:
- Hemophilia treatment: €1.5–3 million/year
- Obesity treatment: ~€2000/year
👉 This creates a paradox:
- Scientifically possible
- Economically difficult
🧪 3. Drug Modalities (Technologies Used)
Different types of drugs:
🧬 Biological
- Proteins
- Peptides
- Antibodies
🧫 Genetic / molecular
- RNA interference (RNAi)
- Gene therapy
⚗️ Chemical
- Small molecules (traditional drugs)
Key concept: Scalability
- You must design drugs that can be produced at massive scale
- Especially for diseases like obesity (millions of patients)
👉 This affects decisions VERY early, even before the drug exists.
💊 4. Route of Administration (Why it Matters)
Options:
- IV (intravenous)
- Subcutaneous injection
- Oral (pill)
Important trade-off:
- Oral drugs = easier for patients
- BUT:
- Lower bioavailability
- Requires more drug material
👉 This directly impacts:
- Manufacturing cost
- Feasibility
🧠 5. Role of Data & AI
Modern drug development relies heavily on:
- Clinical trial data
- Real-world patient data
- External datasets
Why?
To:
- Identify target populations
- Optimize trial design
- Predict outcomes
👉 AI is used to:
- Mine large datasets
- Improve decision-making
🧪 6. Clinical Trials Scale
Example numbers:
- 200+ trials
- ~40,000 patients
- ~14,000 sites
👉 Key insight:
Running trials is a massive logistical operation, not just science.
🔄 7. Drug Development Pipeline (Core Concept)
This is the most important section.
Stages:
- Idea / Pre-project
- Research → candidate selection
- Preclinical (animals)
- Clinical trials
- Phase 1: safety
- Phase 2: efficacy (does it work?)
- Phase 3: large-scale validation
- Submission & approval
- Market launch
🧠 Key concept: “Working backwards”
You define:
- What the final drug should do (label claims)
Then plan backwards:
- What experiments prove that?
- What data is needed?
👉 This is goal-driven science, not exploratory.
🚪 8. “Gates” (Decision Points)
Each stage has a go/no-go decision:
- Gate 0 → idea validated
- Gate 1 → candidate selected
- Gate 2 → efficacy proven
- Gate 3 → large trials
- Gate 4 → submission
👉 At each gate:
- Risk is evaluated
- Investment increases
💸 9. Cost & Time
Key numbers:
- ~$2.6 billion per drug
- ~15 years (historically)
- Goal: reduce to ~5–6 years
Why so expensive?
Because of failure rate:
- Only ~2% of ideas reach market
- Only ~5% survive after first human trials
👉 You are paying for:
- All failed drugs
- Not just the successful one
📉 10. Probability of Success (Critical Insight)
Typical success rates:
| Stage | Success |
|---|---|
| Pre-project → candidate | ~70% |
| Candidate → human | ~70% |
| Phase 1 → 2 | ~40% |
| Phase 2 → 3 | ~30% |
| Phase 3 → submission | ~60% |
| Submission → approval | ~95% |
👉 Overall:
Extremely low total probability (~2%)
⚠️ 11. Risk Management (“De-risking”)
A huge part of the job is:
- Increasing probability of success
- Reducing uncertainty early
Example:
- Animal studies to predict clinical outcomes
👉 Goal:
Shift probabilities from e.g. 40% → 50%
Even small improvements = huge financial impact.
🏭 12. Manufacturing Challenge
You must decide:
👉 When to build large-scale production?
Problem:
- Too early → waste billions if drug fails
- Too late → delay market entry
This is a strategic gamble.
⏱️ 13. Why Development Is Slow
Not just science.
Major delays come from:
- Regulatory approval
- Setting up clinical trials
- Patient recruitment
- Data analysis
Key concept: “White space”
Time where:
No patient is receiving drug
👉 Reducing this = faster development
🧪 14. Parallel Development Strategy
To speed up:
- Develop multiple candidates simultaneously
- Run steps in parallel instead of sequentially
👉 Trade-off:
- Faster
- More expensive
- Higher risk
💉 15. Devices Matter
Drug ≠ only molecule
Also includes:
- Injection systems
- Smart devices
- Patient usability
Important:
- Device approval is almost as complex as drug approval
🧠 16. Organizational Structure
Each drug is treated as:
An independent project with its own team
Includes:
- Scientists
- Clinicians
- Manufacturing experts
- Regulatory specialists
- Commercial teams
📊 17. Portfolio Strategy
Companies manage:
- Many projects at different stages
Goal:
- Balance risk
- Ensure some reach market
⚖️ 18. Internal vs External Innovation
Strategies differ:
- Some companies:
- Do everything internally
- Others:
- Buy startups / technologies
👉 No single “best” approach
🧠 Key Takeaways (Most Important Concepts)
1. Drug development is a risk-management problem
Not just science.
2. Failure is expected
- Most drugs fail
- Cost is built into system
3. Decisions are made with incomplete data
- Early investment happens before certainty
4. Scalability and economics matter from the start
- Not just “does it work?”
- But also:
- Can we produce it?
- Can we afford it?
5. Speed vs risk trade-off
- Faster = more risk
- Slower = lost opportunity
6. Modern drug discovery is interdisciplinary
- Biology
- Chemistry
- Data science
- Logistics
- Economics