Eroom’s Law is Moore’s Law spelled backwards. It’s a term that was coined in a Nature Reviews Drug Discovery article by researchers at Sanford Bernstein and describes the exponential decrease in biopharma research and development efficiency between the 1950s and 2010. Whereas Moore’s describes technologies becoming exponentially faster and cheaper over time, Eroom’s Law describes the trend of drug development becoming exponentially more expensive over time.
The article describing Eroom’s Law was published in 2012, and analyzed data up till 2010. That is perhaps ironic as 2010 appears to be an inflection point in the trend. In Breaking Eroom’s Law, the authors analyze the data since 2010 and show that costs appear to have stabilized over the last ten years. But what has contributed to this critical and exciting trend shift? In our conversation, Jorge and Vijay discuss the three causes cited by the authors of the Breaking Eroom’s Law article, their views on what technologies and policies will continue to push costs down, and their opinion on whether Eroom’s Law is broken for good.
Jorge Conde is a General Partner on the Bio + Health team, focused on therapeutics, diagnostics, life sciences tools, and software.
Vijay Pande is the founding General Partner of a16z Bio + Health, focused on the cross-section of biology and computer science.
Lauren Richardson is the Founder and Principal of LR Bio LLC.
Between the growing ability to engineer biology for therapeutics, and the integration of tech into how patients receive care, bio and health are fundamentally changing the world. Join the team at a16z and host Olivia Webb as they discuss these transformations with scientists, builders, and leaders.