Q&A with Lonza: Support for biotech startups

Following on from their recent partnership with Israel Biotech Fund (IBF), EPM caught up with Lonza's Pnina Weitz on the importance of early-stage support for emerging companies, and how robust strategies early on can pave a way to commercialisation.

Q. What impact are you hoping this collaboration agreement will have on biotech startups and innovative companies in Israel?

Lonza will provide Israel Biotech Fund’s portfolio companies with tailored advice, flexibility and services for the development and manufacturing of their biologics and small molecules. We hope to de-risk their drug development by equipping them with the manufacturing know-how and facilities and ultimately aim to enhance clinical and regulatory success to retain investor interest. 

In Israel, a country that is slightly smaller than the state of New Jersey, there were more than 1,750 life science companies active at the end of 2020, many of which are startups and small biotech companies. These emerging companies usually bring innovative medicines that address rare or challenging diseases with few treatment options. The science behind their molecules is often pioneering, but they rely on external manufacturers to scale up as they don’t have and won’t aspire to have in-house manufacturing resources.

If they can retain investor interest and bring their therapeutics to later stages, it can position them for acquisition or even taking their molecules to market themselves – an option more startups are choosing due to increased funding. 

Ultimately, it can help bring their life-saving medicines to the patients who need them quicker and safer. 

Q. Why is it so important for startups to receive flexible offerings?

Emerging and small biotech companies continue to develop more of the drug development pipeline– increasing by around 15 percent each year. Historically these companies work to quickly partner with a larger pharmaceutical company as they scale up. However, today, many of them are looking to own their molecules for a longer time and sometimes all the way to commercialisation.

As their goals vary, CDMOs like Lonza need to be flexible with our services and provide services tailored to the startup’s goals. This is part of our framework agreement with IBF’s portfolio companies. This may include early assessments to identify and mitigate development risks, overseeing the products’ life cycle, or providing counsel in navigating global regulatory landscapes around in vivo testing. This flexibility is critical for smaller companies as these biotechs are in the early stages, and it may be difficult to make long-term commitments when the future of the product is not clear. Additionally, time efficiency is critical, especially in this phase, so the flexibility enables speed in the market to help meet important milestones. 

Q. How can such a strategy pave a way for other biotech companies to commercialisation?

Emerging biotechs play a key role in innovation. However, they can be seen as high-risk since they may not have the development or the manufacturing resources and experience needed to progress through various stages of clinical development. Ensuring the right resources are available is an important factor for VCs when investing, and they look to contract development and manufacturing organisation (CDMO) as a strategic partner.

CDMOs can de-risk a VC firm’s portfolio by providing expertise from navigating regulatory frameworks to manufacturing know-how in every development stage. With the right partner, collaborations between VC and small biotech companies can lead to a more secure path to market success.   

Q. Anything else you would like to add?

The agreement with IBF aims to broaden the scope of services provided by Lonza to pharmaceutical companies in the Israeli ecosystem and an opportunity to support the unique needs of these companies looking to simplify and de-risk the development of their molecules. This is particularly relevant to the Israeli biotech industry, where the number of biotech startups established every year has averaged 150 in the last decade.