EQRx Raises White Flag On Its Low-Cost Drug Business Model

 
• By Jessica Merrill
  
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The company is backing out of the development of several clinical-stage assets and will cut 170 positions while it changes its business strategy.

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EQRx has given up on its initial mission to dramatically lower drug costs • Source: Shutterstock

EQRx, Inc. launched in 2020 with a singular goal of developing “me-too” drugs that could get to market faster than generics with dramatically lower prices over competitor brands, lowering costs for patients and health systems. The purpose-driven business strategy was intriguing at the time, but success also seemed improbable given the costs and risks of drug development and the commercial hurdles for follow-on drugs in the US market – even with competitive pricing.

Now the company is admitting defeat on that original goal, announcing on 8 May after market close that it will...

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