David Abraham Blech (born November 25, 1955) is an American businessman, investor, and venture capitalist. He is one of the financial pioneers of the biotech industry and was once known as the "King of Biotech".
Early life and education
Blech grew up in Brooklyn, New York.[1] Blech graduated from Baruch College and earned a Master's in Music Education at the Teacher's College of Columbia University.[2]
Early career
Since 1980, Mr. Blech has been a founder of companies and venture capital investor in the biotechnology sector. His initial venture investment, Genetic Systems Corporation, which he helped found with his father and his brother Isaac Blech, was built around promising scientists, including the high-profile microbiologist Robert Nowinski. It developed the first inexpensive and accurate test to diagnosis sexually-transmitted diseases using monoclonal antibodies, allowing tens of thousands of babies to be born to women who otherwise would have become sterile from pelvic inflammatory disease.[3] The company was sold to Bristol Myers in 1986 for $294 million (3%) of Bristol Myers stock.[4]
In 1989, Blech co-founded Icos Corporation with Nowinski and George B. Rathmann, receiving the largest start up financing in biotech history at $33 million. Icos discovered the drug Cialis, which was acquired by Eli Lilly in 2003 for over $2.6 billion. The Blechs also co-founded Celgene Corporation in 1986, which was a unit of the Celanese Corporation, and was spun off as an independent company following the merger of Celanese Corporation with American Hoechst Corporation. Celgene introduced two major cancer drugs, and has a current value of over $35 billion, making it the 5th largest biotech company in the world.[5]
Other companies he helped found include DNA Plant Technology, Neurogen Corporation, Incyte Pharmaceuticals, Alexion Pharmaceuticals, ARIAD Pharmaceuticals, Neurocrine Biosciences, Cytosorbents Inc, and Intellect Neurosciences. He was also instrumental in the turnaround of Liposome Technology Inc. and Biotech General Corporation. In 1990, Mr. Blech founded D. Blech & Company, which, until it ceased doing business in September 1994, was a registered broker-dealer involved in underwriting biotechnology issues.[citation needed] At his peak in 1992, Blech's wealth was estimated at almost $300 million, briefly making him a member of the Forbes 400.[6]
Falling deep into debt, D. Blech & Co was in violation of net capital rules and ceased operations on September 22, 1994, a day that came to be known as "Blech Thursday" in the biotech industry.[5]
Blech came under investigation by the SEC for securities fraud. During the investigation Lloyd Schwed, a Florida-based attorney representing a group of former brokers, attempted to blackmail Blech by promising to withhold tapes subpoenaed during the investigation. Blech became an informant in exchange for leniency. He pleaded guilty to two counts of criminal fraud and was sentenced to a five-year term of probation.[5] A documentary film titled The Blech Effect was released in 2020 documenting his rise and fall in the industry.
Personal
Blech says he is bipolar, has a gambling addiction and is a member of Gamblers Anonymous.[7][8]
References
- ^ Williams, Duff. "He helped create the biotech boom and when it went bust, so did he". The Seattle Times.
- ^ Bylinsky, Gene (June 19, 1989). "WHAT A WAY TO START A COMPANY! A pharmaceuticals giant has put more than $70 million into Nova, a fledgling outfit that didn't even have a lab before it went public – and still hasn't marketed a product". CNN.
- ^ "Life Sciences Foundation". July 26, 2016.
- ^ Walters, Donna (February 4, 1986). "Bristol-Myers Agrees to Buy Genetic Systems : Syntex Bought Out of Deal With Biotech Firm". Los Angeles Times. Retrieved February 18, 2012.
- ^ a b c Duff Wilson; David Heath. "He helped create the biotech boom and when it went bust so did he". Uninformed Consent. Retrieved February 18, 2012.
- ^ William P. Barrett; Janet Novack; Daniel Fisher; Matthew Rand. "And Starting to Bark". Forbes. Retrieved February 18, 2012.
- ^ Pollack, Andrew (September 5, 2013). "A Biotech King, Dethroned". The New York Times.
- ^ "David Blech Gets Four Years for Manipulating Stock Prices". Bloomberg.
This page was last edited on 11 July 2023, at 10:31