EQRx Raises White Flag On Its Low-Cost Drug Business Model

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.

Now the company is admitting defeat on that original goal, announcing on 8 May after market close that it will scrap the business strategy to pursue innovative medicines after experiencing setbacks. EQRx said it will back out of the development of several clinical-stage assets and lay off 170 employees to reduce costs while rebuilding the pipeline