Madridge
Journal of Behavioral & Social Sciences

ISSN: 2638-2032

International Conference on Alzheimerʼs Disease & Associated Disorders
May 7-9, 2018 Rome, Italy

The Enigma of Eroomʼs Law and the Wall Street Math Stifling Alzheimerʼs Drug Discovery

Max Tokarsky

Founder and CEO of InvestAcure, USA

DOI: 10.18689/2638-2032.a1.001

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As the prevalence of Alzheimerʼs disease (AD) grows, so do the costs it imposes on society. Yet, despite a significant number of drugs showing promise in animal models, progress is being stifled by a breakdown in the ROI model at the clinical stage of drug discovery. For complex diseases like Alzheimerʼs research, progress depends on the trial and error of real-world Phase 1 & 2 clinical trials. Due to the high cost of clinical research, this stage of drug discovery depends on industry-led investment. The average cost of developing a new drug, per billion US dollars spent on R&D, has doubled roughly every nine years since 1950. That means, adjusted for inflation, it costs 80 times more to develop a new drug today then it did in 1950! The observation of this trend was coined Eroomʼs Law by industry analyst Jack Scannell in 2012, writing in Nature Reviews Drug Discovery. The current ROI from internal R&D in the pharmaceutical industry as a whole is an average 3.7%. For Alzheimerʼs, this model has broken down altogether and has led most major pharmaceuticals to downsize or close their Alzheimerʼs research divisions. A structural solution to the current financial model is needed if we are to make progress to a cure. InvestAcureʼs Public Benefit Corporation model offers one such solution, by transitioning investment leadership from the current Venture Capital model to micro-investment by those impacted by the disease.

Biography:

Max Tokarsky is a Founder & CEO of InvestAcure, PBC. Max is a lifelong social entrepreneur and nonprofit executive. He is the Founder & CEO of InvestAcure, PBC, an SEC-approved RIA, with a bold plan to solve the current investment bottleneck at the clinical stage of Alzheimerʼs drug discovery. InvestAcure enables those impacted by Alzheimerʼs to partner in the search for a cure by automatically investing their spare in clinical stage pharmaceuticals spearheading research. This helps transition investment leadership from a narrow group of high-risk investors to a much larger and stable investment base, leading to more clinical trials, more drugs and drug combinations tested and progress to a cure.