,

By Sari Staver

AMN CORRESPONDENT

With $13 million in backing from

some of the nation's shrewdest venture
capitalists, 30-year-old Michael Riordan, MD, has launched Gilead Sciences, which is developing a new class Johns Hopkins U. Medical School "so
of drugs to fight diseases such as AIDS I could spend all my elective time" in
the molecular genetics and biology labor cancer.
Speaking before some 1,500 institu- oratories.
tional investors attending the Ham.
brecht and Quist annual health care
AFTER medical school graduation;
conference in San Francisco last Dr. Riordan moved to Boston, where
month, Dr. Riordan said the company, he simultaneously .e nrolled in the Harnamed for the biblical site of a healing vard Business School and began workbalm, is the only one in the United ing as a management consultant for
States solely devoted to "genetic target- pharmaceutical and biotechnology
ing," a promising technique that selec- firms. With 'his MBA in hand, Dr.
tively inhibits viral genes or oncogenes. Riordan worked briefly as a banker in
Although still unproven in humans, Japan before launching his career as a
early laboratory experiments have con- venture capitalist with Menlo Ventures
vinced Dr. Riordan that genetic target- in Menlo Park, Calif.
ing offers a "tremendous opportunity"
With support from his partners at
to usher in a new generation of drugs to the venture capital firm, Dr. Riordan
treat a wide variety of viral diseases spent a year laying the groundwork for
and oncogene-derived cancers.
what he hoped would soon be his own
In an interview after his presenta- company by visiting the laboratories of
tion, Dr. Riordan declined to discuss the leaders in the fledgling scientists.
specifics of any drug under develop- "Those frequent-flier miles came in
ment
"it's proprietary information," handy" as he visited laboratories in
- but says the company's "top three" Great Britain and F rance, he said.
After hearing Dr. Riordan's reports
priorities are the human immunodeficiency virus, hepatitis B, and cytomeg- on genetic targeting and the commeralovirus. "I can't say any more" about cial potential possible, Menlo Ventures
when such agents could be in the mar- gave the young physician $2 million to
. ketplace, he added.
launch Gilead. "I believe that was an
. A fast talker and quick thinker, Dr. . example of venture capital at its very
Riordan made the transition from finest," Dr. Riordan said of his fformer
n1edicine to business without skipping partners' support. "They not only
backed me, but had the clout to help
a beat.
While an undergraduate biology/- me put it together."
Over several months, Dr. Riordan
chemical engineering student at Washington U ., in St. Louis, Dr. Riordan hired 16 employes to work in the Foswas intrigued with the first recombi- ter City, Calif., laboratory, just outside
nant DNA experiments. He selected San Francisco. With an $11-million

capital infusion in November, 1988,

the firm recently moved into an 8,000square-foot research and development
facility, where it synthesizes analogs
.with known anti-viral activity and develops new analogs with enhanced activity.
While he is the "boss" at his new
company, Dr. Riordan sees the position differently. "I work for everyone
else in the company to see that we perform groundbreaking science, act
shrewdly in business, and develop a
new class of drugs. By combining or. ganic chemistry with molecular genetics, I believe we are making a major
contribution to the life sciences."

PHOTOS: SARI STAVER/AMN

Michael Riordan, MD

AMERICAN MEDICAL NEWS/ FEBRUARY 3, 1989