Dearest Brazeryens: 2024, e/acc, etc.
[Welcome to Issue Number 47 of The House Brazeryen, where we break down the latest #startup, #biotech, and #ScientistCEO-related news for you fortnightly, in roughly 5 minutes. Brought to you by Brazen Capital and brainsurgerydropout.]
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Are bad CROs the fuckboys of biotech?
by W. Shawn Carbonell, MD, PhD â Today, I will continue on the theme of âWhy Scientist-CEOsâ from the last issue, specifically recounting my many less than optimal experiences with contract research organizations (aka, CROs) as a semi-virtual biotech startup founder.
As a young, cash-strapped startup, youâll need CROs to outsource everything from performing scientific experiments and analysis to pharm/tox studies to developing manufacturing processes to assembling regulatory packages to medical or grant writing to operationalizing your clinical trials, etc.
The trick is to find good CROs because many will literally treat you like shit.
Whatâs a âgoodâ CRO?
The thing is⌠you canât really know if a CRO will treat you like shit until after you sign contracts and they start to treat you like shit.
As a startup, CROs hold all the power in the relationship
The conundrum is that the âname brandâ CROs typically have bigger and richer clients than you and charge premium fees. So, if you go with one of these, youâll often pay a lot more (if you can even afford it) for slower service. WTF.
Also, expect to be âbumpedâ from the schedule last-minute by a larger client and hope you have enough runway to not go out of business.
Emotional vampires
Beyond the CRO research technician who to tried to blame my drug for rectal bleeding when in fact they had accidentally punctured the rectum with the anal temperature probe, I unfortunately have had many bad CRO experiences:
Western Schmear. Before our tiny SF lab acquired a used LiCor imager with our friends at Carmot Therapeutics we had to outsource our western blots. Unfortunately, our first vendor sent the blots back in cursive:
We asked for the blots in triplicate (i.e., experiment ran 3x on separate gels) for quantitation, but they just sent the same blot with three different exposures. No.
While you donât need to be a scientist-CEO to know the above work is shit, the worst part was the scientist/owner of this shop was not very responsive and when we did hear from them they were super defensive. After over 10 weeks of trying to work with them we still had no useable data.
Verdict. Ultimately, we didnât have to pay for the work (thank you Science Exchange for mediating), but we paid in other ways: we missed a goddam funding milestone.
Debrief. A quick google search suggests this vendor is still in business, however, they no longer list Westerns in their services list (phew!).
Medical Mystery Writer. When it came time to assemble our first IND submission to FDA we worked with a larger, well-known CRO for some medical writing and submission assistance as our internal team was tiny (5) and we were trying to meet a very Elon-like submission deadline.
After a puzzling beginning where essentially no work was done by the consulting writer, we flew them out at our expense to work with us side by side in the office for a couple days to try to build rapport and jump-start things. We wined and dined them and talked about the patients we were trying to help.
Despite all of thisâand moreâthey missed deadlines, GROSSLY overestimated their hours (including possibly billing us for a day they flew back to their alma mater for a big football game⌠bafflingly posting the photo evidence on social media), and created a shoddy product with âhighâ and âmediumâ validation errors that our team had to completely undo.
But that wasnât the worst part. When we outlined the complaint in detail to the Senior BD executive who sold us the package, they became combative and condescending and orchestrated flabbergasting things I donât have time to detail here.
It was clear this was their company culture⌠that they were accustomed to hands-off executives who likely wouldnât even know they were being been charged for work that wasnât done properly (or at all). Once again, being a scientist-CEO saved our asses.
Verdict. Ultimately, we had to undo the damage they did and complete the contracted work ourselves in a miraculous 2-day sprint. To add insult to injury, we had to pay them to go away so we could contract a non-shitty CRO for ongoing work. The day we successfully submitted our IND, I had sweatshirts made for the entire team mocking this CRO and it remains one of my most prized possessions (the design is an inside joke, otherwise I would have shared a photo).
Debrief. I just looked at the LinkedIn profile of the Senior BD exec in question and they started a new role at another CRO a few months after we terminated their contract. Just looking at their profile picture gives me PTSD. What a stressful time made unnecessarily twice as stressful by shit CROs.
BRAZEN BREAKDOWN
This topic is too big to address here fully. Itâs not hopeless, though. Here are some high level pro tips based on my experience:
Referrals: One of the best preventative measures is a referral from a happy customer, preferably one who you know and trust and is from a startup of the same size and stage. I am happy to share my experiences with founders privately.
Boutiques: Thankfully, there are âboutiqueâ CROs that cater to smaller startups that are worth looking into. They tend to be cheaper and faster. A bonus is you do not have to deal with layers of bureaucracy.
Marketplaces: The main problem with boutique CROs is finding them. My startup was an early power user of CRO marketplace Science Exchange (YC S13) which was helpful for outsourcing things as mundane as cutting and mounting paraffin sections on slides to SPR for antibody affinity. Another related platform (that I have no experience with) is Scientist.com.
Termination: Unfortunately, once you sign the dotted line and work begins you likely wonât be able to divorce your CRO for free. Be sure to negotiate this clause carefully andâparticularly for larger contractsâwork with them to prospectively divide the project into multiple discrete work orders which simplifies billing and may make for logical termination points, if/when necessary.
People: The examples above of bad behavior are largely the result of one or a few bad apples. If the CRO is large enough you can sometimes salvage things by requesting a new project manager, consultant, or team.
BRAZEN IRL: BRAZEN CAPITAL AT JPM
Shawn (and possibly Monica) will be repping Brazen Capital in San Francisco next week during the JP Morgan Healthcare Conference, the âSuper Bowl of Biotech.â
BRAZEN BREAKDOWN
Come find Shawn at one of the many evening receptions (where the real work is done) including Breakout Ventures âCIRCUSâ, Y Combinator Happy Hour, and the Nucleate JPM Social event.
Investors and founders who want to meet up can also reply to this email or find us on the BIO partnering system.
VC CORNER: NEW YEAR, NEW ME
by Scott Alpizar, PhD â Well, maybe not a new me, but an improved me! A title like âthings Iâm planning to do to improve in 2024â just didnât feel right and is much more of a mouthful.
In these newsletters I try to bring practical advice about what you should be thinking about as a founderâwhether youâre negotiating term sheets, crafting pitch decks, or looking for general updates on the VC world. But I rarely talk about me! So, in this first issue of 2024, Iâm going to try something different and share what Iâm planning to do this year to level myself upâand hopefully help level you up as well! Plus, if weâre being honest, I need the extra accountability.
BRAZEN BREAKDOWN
Hereâs what Iâm hoping to accomplish:
Help More Startups. I currently support a handful of startups at my day job, but Iâm ready to branch out and help more! Iâm passionate about helping scientists who donât even realize they have a company get one started and set it up for success. Iâve got a few different founders/companies Iâm looking forward to working with in 2024, but Iâd love to help you too!
Aaaactually Read Some Books. I had set goals to read 20 books in 2020, 21 in 2021, 22 in⌠you get the point. Iâve read maybe eight total books in the last four years, but still have a stack of books that goes from floor to ceiling that Iâve been dying to get throughâa mix of venture capital books, biographies, and even some fiction. This year, Iâm making it happen.
Meet More Incredible People. Itâs taken me some time to get comfortable reaching out to and/or talking to people Iâve never met. Iâm often hesitant with imposter syndrome or struggle to see the value I can add. But the truth is that you never know who youâll meet and what will come of it. It really is all about networkingâplus everyone has an interesting story!
Write More. Iâm often amazed at how much Iâve learned over the last couple of years. Itâs in a pretty niche space, but one that I think needs more resources. Whether via LinkedIn posts or through a newsletter of my own (something Iâve been throwing around for a while), I want to supplement and get deeper on what I write hereâmore logic on why I suggested one thing over another or more background on what my experience has been. Even if it only reaches and motivates a few people, thatâs enough for me.
Hopefully youâre writing down your goals to keep yourself accountable and make this your best year yet too! For those of you out there building companies, trying to break into VC, or just simply want to better yourselves, reach out! Share your story (and a book rec) and letâs do it together! Thereâs so much in store for 2024.
Happy New Year!
đ BRAZEN POLL
đ BRAZEN SNAX
đ¤ 2023: Year of the Big Biotech Layoffs (183 to be exact)
𧏠Oh boy. Hereâs the highly provocative genetics of bisexuality paper
đ Nature Journals discovers science communication is a thing
đ¤ Quantum computing + machine learning may kill literally everyone
đ° Become an LP in Brazen Capital! Help support scientist-CEOs!!!
đşđ¸ Promising results of recent US STEM-igration policies
𼌠 Bryan Johnsonâs modular Blueprint Stack available soon for home delivery
đ Mechanism of largest west coast Japan earthquake in a century explained
âđ˝ The Subtle Art of Not Fucking Up your 2024 Resolutions
â° TikTokCrak:Â Test your canine body language skills, German Shepherd edition
đŞ CARVEOUT
If thereâs one place that is in need of hangover prevention, itâs JPM. Too bad most attendees have never heard of ZBiotics (YC W18)⌠the worldâs first engineered probiotic that helps break down acetaldehyde for âfresher morningsâ after a night of drinks. Itâs Shawnâs secret to conference domination and he will be rolling into SF with a 6 pack. [ZBiotics is not a sponsor, Shawn is just a âpower userâ. That sounds bad.]
đđ˝ A DOSE OF GRATITUDE
We are grateful for free investor passes to expensive biotech industry conferences (which unfortunately are likely subsidized by inflated startup registration fees).
đ BRAZEN MEME
âď¸ FEEDBACK
Leave a comment and letâs continue the conversation on X:Â @brazencapital