This article is adapted from an Expert View column by our Chief Business Officer Abbas Kazimi, originally published in The Pharma Letter on January 29, 2025

In the challenging landscape of drug development, where approximately 90% of drugs never reach approval, the concept of “failing fast” has emerged as a crucial strategy for sustainable success. While this approach might seem counterintuitive at first glance, it’s becoming increasingly vital for biotech companies aiming to thrive in this high-risk environment.

Understanding the “Failing Fast” Philosophy

Drug development success depends on the precise alignment of multiple factors – from target selection and trial design to regulatory strategy and sufficient capitalization. The “failing fast” approach encourages companies to test ideas early through ‘killer experiments’ while fostering a culture that learns from failure rather than fears it. The goal is simple but powerful: identify problems quickly and pivot decisively, preserving valuable time and capital for more promising opportunities.

Building an Objective Decision-Making Framework

A successful “failing fast” strategy must begin at the earliest stages of drug development. At Nimbus, we’ve implemented a “four-leg” model that examines programs through scientific, strategic, financial, and commercial lenses. This comprehensive framework enables teams to make objective decisions about advancing, pausing, or terminating programs.

Real-World Application

This strategy recently came into play with our CTPS1 inhibitor program. Despite the program’s foundation on a genetically validated target and early success in achieving immunosuppression, later stage data revealed an unacceptably narrow therapeutic index. Combined with an increasingly competitive landscape, these factors led to a strategic pause. This decision allowed us to redirect resources to other programs, including our TYK2 inhibitor for psoriasis (subsequently acquired by Takeda for $6 billion) and our WRN inhibitor program, which enabled us to raise $210 million from investors.

Creating a Culture that Embraces Strategic Failure

For a “failing fast” approach to succeed, companies must embed this mindset in their values from the top down. This requires several key practices:

• Clear communication of goals, hypotheses, and resource allocation from the earliest stages
• Regular, objective assessment of programs against predetermined criteria
• Open dialogue with employees, partners, and investors about portfolio decisions
• Recognition that strategic termination of programs is a sign of disciplined management

Interestingly, investors often respond positively when companies take decisive action in the face of uncertainty, recognizing that stopping programs early preserves capital for more promising opportunities and demonstrates strategic acumen.

The Path Forward

Successfully implementing a “failing fast” strategy requires building robust infrastructure for objective decision-making and creating a culture comfortable with uncertainty. While specific inflection points for decision-making will vary by program, the key to success lies in being decisive when those points are reached.

Companies that master this approach position themselves to better navigate the inherent risks of drug development while maximizing their chances of delivering breakthrough medicines to patients.

This blog post is based on an Expert View column originally published in The Pharma Letter. To read the full article, visit www.thepharmaletter.com.