EQRx, Inc. launched in 2020 with a singular goal of developing “me-too” drugs that could get to market faster than generics with dramatically lower prices over competitor brands, lowering costs for patients and health systems. The purpose-driven business strategy was intriguing at the time, but success also seemed improbable given the costs and risks of drug development and the commercial hurdles for follow-on drugs in the US market – even with competitive pricing.
EQRx Raises White Flag On Its Low-Cost Drug Business Model
The company is backing out of the development of several clinical-stage assets and will cut 170 positions while it changes its business strategy.
More from Strategy
• By
As drugmakers update investors on first quarter financial performance, uncertainty around global trade and US regulatory oversight is likely to dominate discussions.
• By
Faced with Trump’s hostile tariff moves, the UK aims to speed up clinical trial start times to support its pharma sector and invest £600m in a new health data research service.
• By
The biotech has rejected a takeover bid from Nordic Capital but a sale to private equity could be a solution to the public market's continued reluctance to adequately value PureTech’s hub-and-spoke business model.
• By
Menarini's Asia-Pacific CEO talks to Scrip about how the Italian group is tailoring its portfolio and pricing approach to local markets making strong strides in primary care and consumer health, while also charting a distinct path in rare diseases and oncology. The China market is also a key focus including as a potential source of innovation as is partnering, where the group has a rich history.
More from Business
• By
There were six biopharma initial public offerings on Western stock exchanges, including five in the US, during the first quarter, but plunging stock values could halt further IPOs.
• By
Sector-specific tariffs, including on pharmaceuticals, could be announced as early as this week.
• By
The pact could be worth more than $2.6bn and adds to growing big pharma investment in the technology.