David Abraham Blech (born November 25, 1955) is an American businessman, investor, and
venture capitalist
Venture capital (VC) is a form of private equity financing provided by firms or funds to startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in terms of number ...
. He is one of the financial pioneers of the
biotech
Biotechnology is a multidisciplinary field that involves the integration of natural sciences and engineering sciences in order to achieve the application of organisms and parts thereof for products and services. Specialists in the field are kn ...
industry and was once known as the "King of Biotech".
Early life and education
Blech grew up in
Brooklyn
Brooklyn is a Boroughs of New York City, borough of New York City located at the westernmost end of Long Island in the New York (state), State of New York. Formerly an independent city, the borough is coextensive with Kings County, one of twelv ...
, New York. Blech graduated from
Baruch College
Baruch College (officially the Bernard M. Baruch College) is a public college in New York City, United States. It is a constituent college of the City University of New York system. Named for financier and statesman Bernard M. Baruch, the colle ...
and earned a Master's in Music Education at the Teacher's College of
Columbia University
Columbia University in the City of New York, commonly referred to as Columbia University, is a Private university, private Ivy League research university in New York City. Established in 1754 as King's College on the grounds of Trinity Churc ...
.
Early career
Since 1980, Blech has founded companies and vested venture capital 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 a test to diagnose sexually-transmitted diseases using
monoclonal antibodies
A monoclonal antibody (mAb, more rarely called moAb) is an antibody produced from a Lineage (evolution), cell lineage made by cloning a unique white blood cell. All subsequent antibodies derived this way trace back to a unique parent cell.
Mon ...
. The company was sold to
Bristol Myers
The Bristol-Myers Squibb Company, doing business as Bristol Myers Squibb (BMS), is an American multinational pharmaceutical company. Headquartered in Princeton, New Jersey, BMS is one of the world's largest pharmaceutical companies and consiste ...
in 1986 for $294 million (3%) of Bristol Myers stock.
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
Eli Lilly (July 8, 1838 – June 6, 1898) was a Union Army officer, pharmacist, chemist, and businessman who founded Eli Lilly and Company.
Lilly enlisted in the Union Army during the American Civil War and recruited a company of men to ...
in 2003 for over $2.6 billion. The Blechs also co-founded
Celgene
Celgene Corporation, headquartered in Summit, New Jersey, was a pharmaceutical company that produced cancer and immunology drugs. Its primary products were Revlimid (lenalidomide), which is used in the treatment of multiple myeloma (63% of 2018 r ...
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. As of 2012, Celgene had introduced two major cancer drugs.
Other companies he helped found include DNA Plant Technology, Neurogen Corporation, Incyte Pharmaceuticals,
Alexion Pharmaceuticals
Alexion Pharmaceuticals, Inc., a subsidiary of AstraZeneca, is a pharmaceutical company headquartered in Boston, Massachusetts that specializes in orphan drugs to treat rare diseases.
Its products include eculizumab (Soliris) and ravulizumab ( ...
,
ARIAD Pharmaceuticals
ARIAD Pharmaceuticals, Inc. was an American oncology company, now part of Takeda Oncology, which was founded in 1991 by Harvey J. Berger, M.D. and headquartered in Cambridge, Massachusetts. ARIAD engaged in the discovery, development, and commer ...
,
Neurocrine Biosciences
Neurocrine Biosciences, Inc. is an American biopharmaceutical company founded in 1992. It is headquartered in San Diego, California, and led by CEO Kyle Gano as of October 11, 2024. Neurocrine develops treatments for neurological and endocrine-re ...
, Cytosorbents Inc, and Intellect Neurosciences. He was also instrumental in the turnaround of Liposome Technology Inc. and Biotech General Corporation. In 1990, Blech founded D. Blech & Company, which, until it ceased doing business in September 1994, was a registered broker-dealer involved in underwriting biotechnology issues.
At his peak in 1992, Blech's wealth was estimated at almost $300 million, briefly making him a member of the
Forbes 400
The ''Forbes'' 400 or 400 Richest Americans is a list published by ''Forbes'' magazine of the wealthiest 400 American citizens who own assets in the U.S., ranked by net worth. The 400 was started by Malcolm Forbes in 1982 and the list is ...
.
Falling deep into debt, D. Blech & Co was in violation of
net capital rule
NET may refer to:
Broadcast media
United States
* National Educational Television, the predecessor of the Public Broadcasting Service (PBS) in the United States
* National Empowerment Television, a politically conservative cable TV network, ...
s and ceased operations on September 22, 1994, a day that came to be known as "Blech Thursday" in the biotech industry.
Blech came under investigation by the SEC for
securities fraud
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information. A documentary film titled '' The Blech Effect'' was released in 2020 documenting his rise and fall in the industry.
gambling addiction
Problem gambling, ludopathy, or ludomania is repetitive gambling behavior despite harm and negative consequences. Problem gambling may be diagnosed as a mental disorder according to DSM-5 if certain diagnostic criteria are met. Pathological ga ...
and is a member of
Gamblers Anonymous
Gamblers Anonymous (GA) is an international fellowship of people who have a compulsive gambling problem. They meet regularly to share their "experiences, strength and hope", so they can help each other solve the problems compulsive gambling has ...