Journal Club: Revisiting Eroom's Law
The a16z Show5 Heinä 2020

Journal Club: Revisiting Eroom's Law

Eroom’s Law is Moore’s Law spelled backwards. It’s a term that was coined in a Nature Reviews Drug Discovery article by researchers at Sanford Bernstein and describes the exponential decrease in biopharma research and development efficiency between the 1950s and 2010. Whereas Moore’s describes technologies becoming exponentially faster and cheaper over time, Eroom’s Law describes the trend of drug development becoming exponentially more expensive over time.

The article describing Eroom’s Law was published in 2012, and analyzed data up till 2010. That is perhaps ironic as 2010 appears to be an inflection point in the trend. In Breaking Eroom’s Law, the authors analyze the data since 2010 and show that costs appear to have stabilized over the last ten years. But what has contributed to this critical and exciting trend shift? In our conversation, Jorge and Vijay discuss the three causes cited by the authors of the Breaking Eroom’s Law article, their views on what technologies and policies will continue to push costs down, and their opinion on whether Eroom’s Law is broken for good.

Stay Updated:

Find a16z on YouTube: YouTube

Find a16z on X

Find a16z on LinkedIn

Listen to the a16z Show on Spotify

Listen to the a16z Show on Apple Podcasts

Follow our host: https://twitter.com/eriktorenberg

Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.


Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Jaksot(1000)

a16z Podcast: Build Your Personal Brand

a16z Podcast: Build Your Personal Brand

Your brand, says head of a16z marketing and Outcast Agency co-founder Margit Wennmachers, is what people say about you when you're not in the room. And it's going to happen, whether you choose to have...

13 Maalis 201731min

a16z Podcast: The Business of Healthcare

a16z Podcast: The Business of Healthcare

Starbucks supposedly spends more on healthcare than it does on coffee beans. And 20 years ago, says Rajeev Singh, CEO of Accolade, healthcare was 10% of GDP; today it’s 19% -- that's nearly one-fifths...

9 Maalis 201717min

a16z Podcast: The Genetics Of Drug Delivery

a16z Podcast: The Genetics Of Drug Delivery

In this episode of the a16z Podcast introduced by Vijay Pande (based on a presentation at our summit event), Russ Altman, Stanford professor of bioengineering -- and former chairman of their Bioengine...

7 Maalis 201714min

a16z Podcast: Technology, Mobility, and the American Dream

a16z Podcast: Technology, Mobility, and the American Dream

The irony of our systems working so well -- technological, corporate, and yes, even political -- is that we've become too comfortable: matching to others just like us, producing less, taking fewer ris...

1 Maalis 201737min

a16z Podcast: The Future of... You

a16z Podcast: The Future of... You

Humans have always wanted to enhance themselves -- from getting nutrition just-right to optimizing their performance, whether in sports or health or work. And food is a big part of all that. But our c...

28 Helmi 201719min

a16z Podcast: Tech and Entertainment in the 'Era of Mass Customization'

a16z Podcast: Tech and Entertainment in the 'Era of Mass Customization'

Imagine, for a moment, an alternative universe: One where Netflix got disrupted by some other streaming-content company that made its DVD rental business irrelevant. But that's just a counterfactual. ...

26 Helmi 201745min

a16z Podcast: Brains, Bodies, Minds ... and Techno-Religions

a16z Podcast: Brains, Bodies, Minds ... and Techno-Religions

Evolution and technology have allowed our human species to manipulate the physical environment around us -- reshaping fields into cities, redirecting rivers to irrigate farms, domesticating wild anima...

23 Helmi 201744min

a16z Podcast: When Will Genomics Live Up to the Hype?

a16z Podcast: When Will Genomics Live Up to the Hype?

It's been nearly 15 years since the Human Genome Project was completed. But "are we there yet" in the golden age of genomics? What did we think we'd have by now, what do we actually have, and what do ...

22 Helmi 201725min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
psykopodiaa-podcast
rss-rahapodi
ostan-asuntoja-podcast
pomojen-suusta
rss-rahamania
rss-draivi
inderespodi
herrasmieshakkerit
rss-sami-miettinen-neuvottelija
rahapuhetta
rss-myyntikoulu
rss-seuraava-potilas
taloudellinen-mielenrauha
kasvun-kipuja
rss-lahtijat
rss-asuntosalkku-kasvussa-podcast
rss-paasipodi
rss-viisas-raha-podi