What is the pathway to success in biotech?

Dr. Steven Gourlay, CEO of Actinogen, is making strides with a novel dementia treatment, Xanamem, which targets small molecules and reduces cortisol. As his drug shows promise in clinical trials, Dr. Gourlay shares his insights on what it takes for Australia's biotech sector to thrive and see more "home-grown" therapies enter the market.

Key Factors for Biotech Success

Discernment

Dr. Gourlay emphasizes the importance of knowing when to persevere and when to quit in biotech endeavors:

"In pharmaceuticals, the sooner you identify a project is destined for failure, the more money you save, and the more you can spend on projects that are going to be successful."

He highlights the challenges of walking away from long-term investments, citing the decades-long pursuit of the amyloid hypothesis in dementia research. Despite billions of dollars spent, only modestly effective treatments like Eisai’s Leqembi and Lilly’s donanemab have emerged.

Commercial and Clinical Relevance

Success in biotech requires creating therapies with broad commercial and clinical relevance, not just "me too" drugs:

"It’s about bringing new science that results in better efficacy and safety. Something that makes a difference to patients."

Dr. Gourlay’s Xanamem drug stands out as the only non-amyloid therapeutic to demonstrate clinical efficacy in multiple controlled trials, with potentially greater effects than traditional dementia treatments.

Domestic Commercialization Partners

Australia’s small population often necessitates exporting biotech innovations. Dr. Gourlay notes the challenges of commercialization:

"We have to become a different company in order to commercialize ourselves. Either that or form partnerships, like Neuren has done with Arcadia for their RETT syndrome drug."

He also highlights the limited pool of local commercialization partners, with CSL Behring being one of the few established players.

Grit and Determination

Dr. Gourlay underscores the resilience required to navigate the challenges of biotech development:

"In biotech, you have to cross the valley of death before you get to the other side. But most companies have to crisscross it multiple times, which can be gut-wrenching for all involved."

He describes his decades-long experience in biotech as an "on-the-job apprenticeship," emphasizing the importance of continual learning and fostering a healthy team culture.

Growth in Australia's Biotech Ecosystem

Having returned to Australia after 17 years in the US, Dr. Gourlay is impressed by the sector's growth:

"It’s great to see older companies like Neuren persisting on their journey, with fantastic royalties and milestone revenues. Unicorns like Clarity Pharmaceuticals and rising phase 2 companies like Dimerix and Recce are also contributing to a healthy ecosystem."

He notes that Australia is now developing a robust enough ecosystem to train junior professionals locally, rather than sending them overseas.

Join the Debate

Dr. Gourlay will share his views on building momentum in Australia's biotech sector at the upcoming Bio Connections Australia Conference, hosted by Informa Connect. The event will take place on 29 July at the Crown Promenade Melbourne.

Learn more and register your tickets here.

About Dr. Steven Gourlay

Dr. Steven Gourlay is CEO of Actinogen, which is in late-stage clinical development of Xanamem for cognitive impairment in depression and Alzheimer’s disease. He was previously the founding Chief Medical Officer at Principia Biopharma, where he designed clinical trials that supported a successful NASDAQ IPO and a US$3.7 billion acquisition by Sanofi. Dr. Gourlay has also held senior roles at GBS Venture Partners in Australia and Genentech in the US.