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The Business of Health Initiative at Georgetown University’s McDonough School of Business staged a broad dialogue on the mechanics and ethics of funding life sciences advances. Leaders from venture capital, public markets, industry and academia met to interrogate how capital flows in a sector characterized by scientific uncertainty, lengthy development cycles and direct consequences for patients. The program framed financing not as a set of transactions but as a strategic, ongoing responsibility that shapes which therapies reach the clinic and who can access them.
Opening remarks by Paul Almeida, dean and William R. Berkley Chair at Georgetown McDonough, set the tone: business expertise is integral to translating discovery into care. Almeida argued that progress in health must be judged by both extended lifespan and improved quality of life, insisting that effective deployment of capital and operational know-how are part of the innovation equation. His message: breakthroughs need business models that create sustainable patient impact within a responsible ecosystem.
Leadership under uncertainty: lessons from a CFO
The keynote conversation featured Michael McDonnell (B’86), Biogen’s former chief financial officer, in dialogue with Tineer Ahmed (MBA’27). McDonnell recounted how biotech leaders must make high-stakes choices while cash is finite and outcomes are unknown. He used Biogen’s experience with an Alzheimer’s therapy to illustrate how scientific success can collide with economic realities: after FDA approval, a pivotal insurance reimbursement decision released on January 11, 2026 dramatically constrained patient access. McDonnell reflected on the market response—where market capitalization swung from roughly $40 billion to $70 billion and then toward $20 billion—underscoring that regulatory and payor signals materially alter commercial prospects.
Decision-making and priorities
McDonnell emphasized that strong leadership requires clarity, humility and disciplined allocation of scarce resources. In an environment where programs can consume years without revenue, boards and executives must weigh scientific promise against financial runway. The session framed resource prioritization as a core competency for companies seeking to maximize both patient outcomes and shareholder value.
Investor viewpoints: valuing potential over present earnings
A panel on investor insights assembled voices from New Enterprise Associates, BMO Capital Markets and Mizuho Securities, moderated by Peter Crnkovich (B’78). Panelists explained that traditional valuation metrics often fall short in biotech, where investors are underwriting future standards of care rather than current cash flows. Ali Behbahani described biotech investing as a bet on transformative ideas—rare but occasionally revolutionary. The group also discussed how public markets function as discovery platforms: IPOs not only raise funds but introduce companies to broader audiences who will track clinical milestones and commercialization potential.
Regulatory and market signals
Speakers pointed to evolving dynamics at the Federal Drug Administration and other regulators as a growing source of uncertainty. Such shifts complicate modeling and can amplify volatility around study readouts or approval decisions. The panel highlighted that investors must interpret regulatory guidance alongside clinical data, and that signals from agencies and payors can be as decisive as trial outcomes in shaping company trajectories.
Raising capital: strategies, timing and partner selection
A second panel focused on practical approaches to funding clinical-stage companies, featuring executives from Poplar Therapeutics, REGENXBIO and CorMedix and moderated by Gregg Gilbert. Panelists stressed that fundraising is a continuous strategic activity—not a single event—and that leadership teams often spend significant time managing liquidity and investor relations. Joseph Todisco advised maintaining at least a year of cash on hand and being deliberate about when to approach the market. The conversation reviewed a toolbox of options: equity, strategic partnerships, royalty financing and non-dilutive funding like grants, each with trade-offs for control and future flexibility.
Picking the right investors
Speakers warned that investor selection influences more than immediate capital: it shapes board composition, commercialization strategy and long-term optionality. Chip Baird noted there is no universal playbook—positive trial data can boost a company’s value dramatically, while regulatory setbacks can cut valuation just as sharply. The panel recommended aligning financing strategy with clinical milestones and choosing partners who share the company’s horizon and patient-centered mission.
Collaborative responsibility
Closing remarks introduced by Ivica Labuda and delivered by Tatiana Litvin-Vechnyak reinforced a common theme: advancing healthcare requires shared effort from academia, industry and investors, particularly in early-stage work where ideas are promising but unproven. Litvin-Vechnyak reiterated that innovation is about enhancing quality of life as much as extending it, calling for disciplined financing approaches that preserve patient access. The event also showcased Georgetown’s expanding role in this field, including the new MBA Certificate in the Business of Healthcare, with its first cohort graduating this year.
Overall, participants walked away with a clear takeaway: the future of biotech depends equally on scientific breakthroughs and the ability to finance them responsibly. Whether through careful capital allocation, thoughtful investor selection or constructive engagement with regulators and payors, the industry must design financing paths that accelerate meaningful therapies to patients while sustaining long-term value.