Unicorns and Rainbows: A Look at Two Biotech Startups Who Found Pots of Gold at The End of The Rainbow

Scrolling through LinkedIn, you might come across the term “Unicorn”. Not to be confused with the mythical horned creature, a unicorn is a privately owned startup company with a valuation of over $1 billion. With startup success being rare, and a startup reaching a $1 billion valuation without accessing the capital markets being even rarer, it makes sense that the companies who do make it to unicorn status are few and far between. In this article, one current and former biotech unicorn, Eikon Therapeutics and Tempus AI, will be detailed.

Eikon Therapeutics

Valued at $3.20 billion in June of 2023, Eikon Therapeutics is a company that uses specialized imaging technology to track and measure movement of proteins in cells to better target disease causing proteins. Through their powerful imaging technology, developed by Eric Betzig, co-founder of Eikon and winner of the 2014 Nobel Prize in Chemistry, researchers at Eikon Therapeutics are able to accurately visualize the workings of various molecules within live cells which can then be quantified and analyzed to guide researchers in understanding how various mechanism within the cell work. In understanding these mechanisms, researchers have a better view of the cell as a whole and therefore treatments and therapeutics can be tailored more efficiently and effectively.

The imaging standards developed by Eikon Therapeutics have led the company to also succeed in the drug development space through a growing portfolio of oncology, immunology, and neuroscience therapeutics. EIK1001 TLR7/8, a compound in Eikon’s oncology portfolio has concluded phase 2 clinical trials for treatment in individuals with melanoma and, in another study, is currently in phase 2 clinical trials being evaluated as a therapeutic for non-small cell lung cancer (NSCLC). With more than 200,000 cases of Melanoma in the United States each year and NSCLC being the most common type of lung cancer, Eikon’s positive clinical trial results have increased the likelihood that the company will be able to access the large markets for melanoma and NSCLC therapeutics in the coming years.

To read more about the drug development process and the costs associated with it, click here to read: “The Price of Progress: Unpacking the High Cost of Drug Development”

Tempus AI

Although no longer considered a unicorn, Tempus had long surpassed the $1 billion valuation required to be considered a unicorn before their June 14 2024 IPO saw the company’s market cap grow to $9.34 billion. The diagnostics company applies AI systems to an extensive library of clinical data in order to provide physicians with personalized care plans that are more likely to result in efficacious treatment for the patient.

In addition to being able to provide personalized treatment plans, the database that Tempus has compiled allows the company to branch into other ventures. Tempus TIME is a program that helps accelerate clinical trial recruitment and improve efficiency within the process.

For an individual to enter a clinical trial for a new therapeutic, said individual must qualify for the trial. Qualification could be categorized in a variety of ways and are left up to the company running the trial in collaboration with the FDA. The search for individuals to participate in trials can sometimes be extremely difficult for companies given the steps necessary to protect patient privacy. Patients searching for clinical trials of therapeutics for their respective ailments tend to mostly rely on their doctor as a source for information. This is a double edged sword, however, as doctors tend to stay informed about clinical trials that could benefit their patient— but to know about every trial happening is almost impossible. Tempus TIME solves this issue through a machine learning algorithm that is able to qualify or disqualify prospective trial participants based upon both molecular and clinical data. This search process sorts through heaps of data including diagnosis, tumor / DNA sequencing, and past treatments along with their outcomes among other parameters. A clear picture is able to be painted for both the patient and the drug developer enhancing the efficiency of the search for effective therapeutics.

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