AFI is thrilled to welcome Larry Cohen, PhD, a seasoned biotech executive and CEO of Health2047, as one of our panelists at dentech 2024. Ahead of the event, we had the privilege of sitting down with Dr. Cohen to dive into his rich career journey, from gene therapy pioneer to his current role leading healthcare innovation. Here’s a glimpse into our conversation:
The Path from the Lab to Leadership
Q: Can you tell us a bit about your background and how you found your way into the world of healthcare startups?
Dr. Cohen: I started as a bench scientist, working on viruses in the mid-80s—back when we couldn’t even imagine manipulating cells the way we do now. But it became clear that viruses could be used to insert genetic material into human cells, which led to the birth of gene therapy. That’s when we founded a gene therapy company. We took technology that didn’t even work yet and commercialized it – that was how naive we were. It was incredibly exciting. That experience opened my eyes to the entrepreneurial side of biotech, and I’ve been hooked ever since.
I became really experienced at what I call the calisthenics of small company formation. How do you raise money? Who do you raise money from? Is it private? Is it public? Is it IPOs? Communications with the FDA, communications with Wall Street, communications with the patent office. I really loved how dynamic it all was. I did that up until 2017, when I was invited to join Health2047. It’s been a fantastic opportunity!
The Venture Studio Model: Fueling Healthcare Innovation
Q: What was the motivation behind forming Health 2047?
Dr. Cohen: It all started when Dr. James Madara became the CEO of the American Medical Association (AMA). Before that, he served as the Dean of both Biology and Medicine and then as the CEO of the University of Chicago. When he joined the AMA, he recognized the immense potential of this organization. It’s an incredible brand. It had great convening power, deep expertise and a strong advocacy presence in Washington, D.C. It had all of these components, but it wasn’t maximizing its ability to shift the direction of healthcare in the U.S.
Dr. Madara, coming from an academic background, reached an important realization: to create real impact, the AMA needed to engage the commercial sector. It wasn’t enough to work solely with academics or hospital systems. The involvement of technology companies, retail organizations, pharmaceutical companies, and other industry players was essential. However, as a nonprofit based in Chicago, the AMA had limitations. Dr. Madara recognized the need for a for-profit arm that could actively collaborate with these sectors.
That’s when Health 2047 was conceived. Dr. Madara smartly located it in Menlo Park, California, giving the venture its own distinct culture, separate from the 200-year-old parent organization, to foster innovation and meaningful partnerships.
Q: Can you tell us about the venture studio model and how it shapes healthcare innovation?
Dr. Cohen: Health2047 works through a venture studio model, which means we’re not just backing ideas financially like a typical venture capitalist would. We help build these companies from the ground up. We partner with the entrepreneur to make it as easy as possible for the company to grow from a seed stage to attracting institutional capital. That’s where we play.
The initial charter from the AMA was to identify big problems in healthcare. So, we are looking to have enormous impact on the entirety. We identify both the problems and potential solutions for those problems, which may or may not involve technology. And then we look to make that solution investable, because it’s going to require capital. So, we are asking, how can that solution be attractive to venture capitalists, or whoever is going to be able to fund it? And then, from there, how do we launch a company? That’s the process that we go through.
Challenges and Lessons Learned
Q: Health2047 has grown significantly under your leadership. What are some key lessons you’ve learned in this role?
Dr. Cohen: One of the biggest things I’ve learned is that this role is less about dictating a vision and more about enabling others. At Health2047, my role is about fostering an environment where multidisciplinary teams can collaborate and innovate together. When you’re building solutions for healthcare, it “takes a village.” There are a lot of disciplines that need to come into play, and they don’t always speak the same language. So, I learned this is a different role from anything I had done before. It is about creating a culture where everyone is collaborating to come up with an idea together.
Another important lesson I learned was the concept of establishing “product-market fit.” In biotech, once the FDA gives its approval, you’re good to go. In healthcare ventures, though, it’s not that simple. You can create the best solution in the world, but if it doesn’t resonate with the market or solve a pressing problem, it’s irrelevant. Understanding that from the get-go has been crucial for our success.
Mission First: Balancing Impact and Business Success
Q: Health2047 has launched nine portfolio companies, with two more in the pipeline. What does success look like for you?
Dr. Cohen: For us, success is about more than financial returns. Yes, we want to be profitable, but we’re here to make a measurable impact on healthcare. The AMA expects us to come back in 10 years and show how we’ve improved the healthcare system, not just the bottom line.
Take one of our earliest companies, Zing Health, a managed Medicare company serving underserved populations in cities like Chicago and Detroit. It was founded by two Black physicians, and they wanted to focus on an insurance company that was going to provide equitable healthcare to the underserved communities that traditional insurance companies tend to overlook. Seeing that company grow—overcoming the challenges of funding and scaling—is one of the most rewarding parts of my job. They’re not just succeeding as a business; they’re making a real difference.
Advice for Early-Stage Startups
Q: What advice would you give to early-stage companies who are interested in working with a venture studio like yours?
Dr. Cohen: I think you want a crisp definition of the problem. You want a solution which encompasses not only what you’re developing or selling, but the receptivity in the market, the pricing, the revenue, those kinds of things. And at this point, you have market driven hypotheses where, yes, there are people that have expressed interest. Yes, they seem to be willing to pay for this kind of thing. You know, those sorts of things that have a series of solutions, but testable hypotheses that say, if we do this together, if we answer these questions, this thing will take off.
Looking Ahead
We can’t wait to hear more from Dr. Cohen at dentech 2024. Make sure to attend Session 4 “Global Innovation and Investment,” where Dr. Cohen will join several global dental leaders and investors to discuss how to coordinate innovation on a global level and de-risk investment with a two-market strategy.
(This interview has been edited for length and clarity. ADA Forsyth is grateful to Dr. Cohen for taking the time to speak with us.)
