at $300 million, I would expect this person to be going into clinical trials.
At that stage, you are dealing with things like FDA GMP compliance[1] and then actually putting molecules into humans and monitoring them for several efficacy end points as well as toxicity. And often you are doing this at multiple sites.
If the doctor wasn't looking to do trials, then he was being ripped off. And if he wasn't looking to do trials for a major disease, he was also being ripped off. Trials for orphan diseases are often cheaper because they are limited by the number of people who even have the disease.
Also, with the rise of CROs[2], you can often find one that will "risk-share". The CRO will lower your bill, often significantly, in exchange for some of the upside on the molecule.
At that stage, you are dealing with things like FDA GMP compliance[1] and then actually putting molecules into humans and monitoring them for several efficacy end points as well as toxicity. And often you are doing this at multiple sites.
If the doctor wasn't looking to do trials, then he was being ripped off. And if he wasn't looking to do trials for a major disease, he was also being ripped off. Trials for orphan diseases are often cheaper because they are limited by the number of people who even have the disease.
Also, with the rise of CROs[2], you can often find one that will "risk-share". The CRO will lower your bill, often significantly, in exchange for some of the upside on the molecule.
[1] http://en.wikipedia.org/wiki/Good_manufacturing_practice [2] http://en.wikipedia.org/wiki/Contract_research_organization