The Billionaires Spending a Fortune To Lure Scientists Away From Universities

An anonymous reader quotes a report from the New York Times: In an unmarked laboratory stationed between the campuses of Harvard and the Massachusetts Institute of Technology, a splinter group of scientists is hunting for the next billion-dollar drug. The group, bankrolled with $500 million from some of the wealthiest families in American business, has created a stir in the world of academia by dangling seven-figure paydays to lure highly credentialed university professors to a for-profit bounty hunt. Its self-described goal: to avoid the blockages and paperwork that slow down the traditional paths of scientific research at universities and pharmaceutical companies, and discover scores of new drugs (at first, for cancer and brain disease) that can be produced and sold quickly.

Braggadocio from start-ups is de rigueur, and plenty of ex-academics have started biotechnology companies, hoping to strike it rich on their one big discovery. This group, rather boastfully named Arena BioWorks, borrowing from a Teddy Roosevelt quote, doesn't have one singular idea, but it does have a big checkbook. 'I'm not apologetic about being a capitalist, and that motivation from a team is not a bad thing,' said the technology magnate Michael Dell, one of the group's big-money backers. Others include an heiress to the Subway sandwich fortune and an owner of the Boston Celtics.
The wrinkle is that for decades, many drug discoveries have not just originated at colleges and universities, but also produced profits that helped fill their endowment coffers. The University of Pennsylvania, for one, has said it earned hundreds of millions of dollars for research into mRNA vaccines used against Covid-19. Under this model, any such windfall would remain private.

The five billionaires backing Arena include Michael Chambers, a manufacturing titan and the wealthiest man in North Dakota, and Elisabeth DeLuca, the widow of a founder of the Subway chain. They have each put in $100 million and expect to double or triple their investment in later rounds. In confidential materials provided to investors and others, Arena describes itself as 'a privately funded, fully independent, public good.' Arena's backers said in interviews that they did not intend to entirely cut off their giving to universities. Duke turned down an offer from Mr. Pagliuca, an alumnus and board member, to set up part of the lab there. Mr. Dell, a major donor to the University of Texas hospital system in his hometown, Austin, leased space for a second Arena laboratory there. [Stuart Schreiber, a longtime Harvard-affiliated researcher who quit to be Arenaâ(TM)s lead scientist] said it would require years -- and billions of dollars in additional funding -- before the team would learn whether its model led to the production of any worthy drugs. 'Is it going to be better or worse?' Dr. Schreiber said. 'I don't know, but it's worth a shot.'

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