FirstWord ExpertViews — one of the pharmaceutical industry’s most rigorous intelligence report series — published a major research study in November 2025 on the convergence of pharma and biotech business models and the opportunities emerging from pharma-biotech hybrid structures. Ali Pashazadeh, Founder, Chairman and CEO of Treehill Partners, was among six global experts selected to contribute, alongside executives from Kybora, Circio Holding, Cellular Origins, Trenchant Bio, and Kiji Therapeutics.
The report covers three major themes: the drivers of pharma-biotech convergence over the past decade; the emerging hybrid business models reshaping how drugs are developed and commercialised; and the leadership, IP, and exit strategy challenges that determine whether such models succeed.
Capital Markets, Fundability, and the Cascade of Investment
Ali addressed the capital landscape with characteristic directness. He described a systemic breakdown in the traditional funding cascade — where seed rounds lead to Series A, crossover, and ultimately to IPO or acquisition — noting that each link in the chain has become strained. With rising interest rates, AI attracting disproportionate risk capital, and limited partners recalibrating allocations, the system faces difficulty at every stage. Without confidence in exit strategies, investors hesitate even where the science is compelling.
He highlighted that biotech companies have lost much of their operational depth over recent years, with management teams thinned by funding constraints. Many are now expected to hold assets later into Phase II and Phase III with smaller teams, smaller budgets, and shorter IP runways — having lost time during COVID. This convergence of pressures, he argued, is forcing both biotech and pharma to rethink how they collaborate.
Hybrid Models and Getting the Best of Both Worlds
On the question of hybrid models, Ali was direct about what makes them succeed or fail. Over 90 percent of deals of this kind fail — not because of the molecule or the technology, but because of human dynamics. The hub-and-spoke model, the biotech-within-pharma approach, and the build-to-buy structure each have genuine strategic merit, but only where there is the right leadership, legal documentation, and joint committee governance to navigate disagreement and keep the programme moving.
Treehill’s experience advising companies across both buy-side and sell-side transactions gives it a distinctive perspective on where these structures break down. As Ali noted, the firm spends considerable time helping companies close gaps — becoming fundable, raising capital, and building the capability to engage with large pharmaceutical companies on terms that work for both parties.
Read the full report: https://firstwordreports.com/story/6641498
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