Ep170: David Schenkein on Investing in the Future of Biotech

Episode Summary

Executive Summary: David Schenkein traces a career from Queens to hematology, biotech leadership, and now GV investing, emphasizing patient impact, culture, and disciplined capital allocation. He explains how mentorship and hands-on medicine led him into industry, why Genentech and Agios shaped his views on decision-making and failure, and how GV uses a long-term, team-based model to back bold science—especially as AI, new modalities, and better data reshape biotech.

Main Topics: Early life, mentors, and the path into medicine (Priority: 5/5): Schenkein describes growing up in an immigrant family in Queens, being shaped by role models like his pediatrician, and choosing medicine over a PhD because he valued patient interaction and human connection. Training in hematology and the appeal of curative impact (Priority: 5/5): He explains why hematology/oncology appealed to him: severe disease, visible patient need, fascination with blood biology, and the reward of curing leukemia and lymphoma with early therapies and transplants. Industry transition through Millennium and Genentech (Priority: 5/5): A coffee meeting with Millennium leaders led him into biotech; later he joined Genentech to run oncology development. He highlights the scientific ambition, patient focus, and different decision-making cultures at both companies. Building Agios and defining company culture (Priority: 5/5): As Agios CEO, he learned that capital discipline, strong culture, and clear decision-making matter. He emphasizes flat organizations, no jerks, empowering leaders, and celebrating failed experiments that yield clear answers. GV’s investing model and long-term advantage (Priority: 4/5): Schenkein explains why GV’s single-LP structure, team-based incentives, and broad remit across tech and life sciences enable patient-centric, patient-timed investments without quarterly LP pressure. AI, data, and the future of drug discovery (Priority: 4/5): He sees AI/ML as an accelerating force in drug discovery, development, and care, but says it must be integrated iteratively with lab experimentation and high-quality data, not replace biology. Market cycles, risk, and advice to younger leaders (Priority: 4/5): He argues biotech is still an extraordinary time scientifically despite market volatility, urges careful capital use, and advises young professionals to keep patients first, build culture, and match roles to strengths.

Key Arguments: Patient impact should be the central criterion for careers, companies, and investment decisions; he repeatedly frames biotech as a mission to help patients rather than chase trends. Hematology and oncology are compelling because they combine urgent unmet need with the potential for genuine cures, making the work both scientifically and emotionally rewarding. Great companies depend on culture: hire outstanding people, avoid toxic personalities, keep hierarchy light, and empower single decision-makers who are accountable for outcomes. Failure should be surfaced quickly and celebrated when it produces a clear answer; burying bad data wastes time, capital, and trust. Capital allocation is the CEO’s primary responsibility, especially in lean markets; discipline early on can determine whether a company survives long enough to reach inflection points. GV’s single-LP model gives the firm a longer time horizon than traditional venture capital, allowing it to support ambitious healthcare companies through long development cycles. AI will materially improve drug discovery and clinical development, but only if paired with experiments and rich datasets; it is a tool for iteration, not a magic replacement for biology. Biotech remains attractive because scientific understanding is rapidly expanding across immunology, metabolism, obesity, neuroscience, gene editing, and other areas, even if public markets are cautious.

Data Points: GV assets under management: about $10 billion - Introduced in the opening description of GV GV portfolio companies: 400 active portfolio companies - Company overview in the introduction Full-time faculty at Tufts: about 13.5 years - Schenkein’s time as a practicing physician-academic Millennium tenure: about 5 years - Time from joining Millennium in 2001 to moving to Genentech Genentech tenure: 4 years - He led hematology/oncology development there Agios CEO tenure: 10 years - He ran Agios before moving to GV Agios founding A round: $33 million - The early financing round when he joined as CEO Agios employees at sign-off / arrival: 3 at offer letter; about 10-11 on arrival - Illustrates the company’s early-stage buildout Approved drugs at Agios: 4 approved drugs - He cites the company’s homegrown output Agios cancer drugs: 3 in cancer - Of the four approved drugs, three were oncology-focused Therapeutic investments at GV: close to 100 - Growth of the life science team’s deal activity over six years Life science team size at GV: close to 20 people - Current team scale after expansion New companies invested in by GV this year: 15 - He notes active pace of new investments High school sends to Harvard: about 30 students per year - Used to illustrate the selectivity of Stuyvesant High School

Pivotal Quotes: "We're not going to hire jerks, although I didn't use that term. I used a term that's a little bit less PC." — David Schenkein: Describing the cultural rules he set at Agios to protect team quality and performance "Don't spend a nickel unless you think it's going to help a patient." — David Schenkein: His core advice to younger people entering biotech and drug development "I think it's likely going to be iterative." — David Schenkein: On how AI will be integrated into drug discovery: compute informs experiments, then feedback improves the tools

Implications: Biotech leaders should pair scientific ambition with culture, capital discipline, and patient focus. AI and new modalities offer major upside, but success will depend on iterative experimentation, high-quality data, and long-term investors willing to fund bold ideas.