Podcast Summary: James Reed: All About Business – Episode 24 featuring Dame Kate Bingham

Introduction

In Episode 24 of James Reed: All About Business, host James Reed engages in an insightful conversation with Dame Kate Bingham, the Managing Partner at SV Health Investors. With over three decades of experience in healthcare investment and a pivotal role in leading the UK’s Vaccine Task Force during the COVID-19 pandemic, Dame Kate offers a wealth of knowledge on business leadership, investment strategies in the life sciences sector, and crisis management.

1. Kate Bingham’s Journey in Biotech and Venture Capital

Dame Kate Bingham’s career trajectory is a testament to her enduring commitment to the biotech sector. Starting in 1991, shortly after completing her MBA, Kate joined Schroeder Ventures, now known as SV Health Investors. Her motivation stemmed from a desire to foster growth in the nascent UK biotech industry by leveraging her experience from a venture-backed biotech firm in Cambridge, Massachusetts.

“I thought that was a pretty interesting opportunity because one of the key things I was interested to do as part of doing my MBA was to bring back those skills back to the UK to really help drive the growth of what was then a very nascent biotech sector in the UK.”
(01:44)

Over the past 30 years, Kate has witnessed and contributed to the transformation of the UK’s biotech sector into a major European player, second only to the United States. She emphasizes the synergy between academic research and biotech innovation, highlighting the UK’s strategic advantage being part of the “golden triangle” of London, Oxford, and Cambridge.

“We are in a very rich place for brilliant minds to be coming up with great new inventions. So that's why we're so lucky to be based here as part of setting up biotech companies.”
(03:41)

2. SV Health Investors: Investment Strategy and Success Stories

SV Health Investors operates as a traditional venture capital firm, managing substantial funds (typically around $500 million) from diverse investors including pension funds, insurance companies, and family offices. The firm invests in early-stage biotech companies, aiming to identify and support innovative drug discoveries that address the underlying causes of diseases through precision medicine.

“We invest in early-stage biotech companies, trying to develop disease-modifying drugs, not just symptomatic treatments.”
(05:00)

A notable success story is Ibio, a company formed by SV Health Investors with an initial seed investment of $6 million. Kate recounts how strategic partnerships and robust funding led to Ibio’s valuation soaring to $3 billion, showcasing the high-risk, high-reward nature of biotech investments.

“We invested about $6 million to seed it to basically get to a point for series A... from an initial seed of 6 million... up to 1.3 billion up front.”
(06:13 - 08:14)

3. Navigating the Complexities of Drug Development

Kate delves into the intricacies of drug development, noting that approximately 90% of drugs fail their trials. Success in this domain requires not only scientific innovation but also strategic investment decisions to support companies through long development cycles, typically spanning 12-13 years.

“Picking winners is critical. You need to focus on killing the lemons quickly and then double down on the plums.”
(20:33 - 20:44)

She explains the importance of leveraging biomarkers and surrogate endpoints in clinical trials to assess drug efficacy and safety early in the development process, thereby minimizing losses from unsuccessful ventures.

“We use biomarkers, surrogates of efficacy, to give us a sense both of safety as well as efficacy.”
(21:31)

4. Leadership Lessons from the Vaccine Task Force

In 2020, amid the COVID-19 crisis, Kate was appointed to lead the UK’s Vaccine Task Force on a pro bono basis. Her leadership during this period underscores her resilience and strategic acumen. She outlines the conditions she set upon accepting the role, including direct reporting to Prime Minister Boris Johnson and the autonomy to recruit her team.

“The first was to report to Boris... and the second one was that I got to recruit my own people.”
(31:27 – 32:15)

Under her leadership, the Task Force achieved record-breaking speed in vaccine procurement and distribution, collaborating closely with regulators like MHRA to expedite the approval process while maintaining safety standards.

“The UK was the first to get the first registered vaccine... MHRA moved from being a policeman to an air traffic controller.”
(33:07 – 34:14)

5. Managing Media and Political Pressures

Kate candidly discusses the challenges of dealing with the media and political scrutiny during the pandemic. She recounts negative press from outlets like The Guardian, which unjustly accused her of corruption and incompetence due to her marriage to MP Jesse Norman.

“They were corrupt, incompetent, and a crony.”
(40:21 – 40:24)

Despite these attacks, Kate emphasizes the importance of maintaining integrity and focus on the mission, ensuring that the vaccine rollout remained a priority over political distractions.

“I think you're going to have a lot of losers and bumps, so actually to be constructive and helpful, to find solutions... matters a lot.”
(23:27 - 24:32)

6. The Role and Recognition of Women in Science

Kate highlights the significant contributions of women scientists during the pandemic, acknowledging leaders like Sarah Gilbert and Sharon Peacock. She advocates for greater recognition and encouragement of women in the scientific community, emphasizing the critical roles they play in innovation and crisis management.

“We women played a huge role in the pandemic... incredibly important women who played critical roles.”
(49:11 - 50:54)

She plans to further champion this cause through lectures and public speaking, aiming to inspire more women to pursue careers in science.

“I've got a lecture at Imperial College called the Athena Lecture, which is all about women...”
(50:59)

7. Future of Vaccine Development and Public Health

Looking ahead, Kate envisions advancements in vaccine technology, advocating for more efficient and cost-effective solutions such as patch vaccines or nasal sprays. She underscores the need for continuous innovation to enhance public health resilience against future pandemics.

“I would like to see a lot more innovation... getting a vaccine is much more straightforward and much cheaper.”
(47:15 - 48:47)

8. Advice for Aspiring Leaders and Scientists

Kate imparts valuable advice to listeners aspiring to enter the biotech or business sectors. She emphasizes finding passion in one’s work, striving to make a meaningful impact, and the importance of hard work and perseverance.

“Find something that you really like... try lots of things until you find something that you really like.”
(51:40)

Additionally, she highlights the necessity of building strong, capable teams and maintaining resilience in the face of inevitable failures.

“You have to have Teflon skin... you're going to have a lot of losers.”
(22:02 - 22:06)

9. Balancing Work and Personal Life

Kate shares personal strategies for maintaining energy and motivation, such as engaging in regular physical activities like spin classes.

“I find that if you have a massive hard workout, you get an endorphin kick at the beginning of the week that takes you through the rest of the week.”
(53:08 - 53:20)

Conclusion

Dame Kate Bingham’s extensive experience in biotech investment and crisis management offers profound lessons in leadership, resilience, and strategic thinking. Her contributions to the UK’s vaccine rollout during the COVID-19 pandemic, coupled with her dedication to advancing women in science, position her as a formidable leader and an inspiring figure in the business and scientific communities.

Notable Quotes

• On Investment Strategy:
  “Picking winners is critical. You need to focus on killing the lemons quickly and then double down on the plums.”
  (20:33 - 20:44)

• On Leadership During Crisis:
  “We are dealing with very large amounts of money... so there are so many opportunities to fail that we need to be absolutely joined at the hip with our management team.”
  (24:32 - 25:57)

• On Women in Science:
  “We women played a huge role in the pandemic... incredibly important women who played critical roles.”
  (49:11 - 50:54)

• On Future Innovations:
  “I would like to see a lot more innovation... getting a vaccine is much more straightforward and much cheaper.”
  (47:15 - 48:47)

• On Personal Resilience:
  “You have to have Teflon skin... you're going to have a lot of losers.”
  (22:02 - 22:06)

Final Thoughts

Dame Kate Bingham exemplifies the intersection of scientific expertise and business acumen. Her ability to navigate complex investment landscapes and lead critical national initiatives underscores the importance of versatile leadership in today’s dynamic world. Listeners can draw inspiration from her strategies and insights to enhance their own careers and business ventures.