Dr. Clay Siegall noticed how problematic finance is in medical companies. It’s unfortunate that too many companies focus on profits more than creating effective medicine. Dr. Clay Siegall founded Seattle Genetics to resolve that problem. While money is a factor, he never allows it to take center stage.
Dr. Siegall first encountered this problem while working at Bristol. He joined the medical field with the sole purpose of developing more effective drugs. The ownership at Bristol, however, focused him on created greater profits. Everything he accomplished added up to more kickbacks for the boys upstairs.
The company limited his work. He didn’t have the latitude or respected he wanted. His projects weren’t under his full control, meaning someone else could alter it if they wanted; and he was a senior researcher. He also had patents that earned the company millions of dollars and he didn’t see a cent more than his normal paycheck.
Fed up with the disrespect and mistreatment, he Seattle Genetics. Now, his company works on projects that he’s wanted to work on for years. They’ve developed numerous drugs and pipeline drugs since its founding in 1998. They even developed the first FDA-approved antibody drug conjugate.
If though he now works on what he wants to work on, money is still a factor. Obviously, the company sells their proprietary drugs. ADCetris, the first FDA-approved ADC, is exclusively theirs for the next few years. That drug and its many indications generate a good part of their profits.
The company also has production partnerships with other companies. And their licensing of technologies and processes is another revenue stream. What many people don’t understand about the drug industry is that it takes a lot of time and money.
Financial success in the drug industry isn’t as big-time as other companies make it seem. One in ten candidate drugs gets approved and the drug makers have to pay the entire bill no matter what. In actuality, it took Seattle Genetics ten years to become profitable.