We asked 19 biotech leaders what breaks their deals. It wasn’t the science.

A survey of 19 biotech executives from firms at various stages and in different markets found that the science behind a deal is rarely the reason it fails. Rather, the most common cause of deal breakdowns is the relationship between the Chief Business Officer (CBO) and the Chief Executive Officer (CEO), as well as the company's board governance structure.

The CBO role in biotech often includes responsibilities such as partnering, financing strategy, portfolio choices, board alignment, and external market signals. However, if these responsibilities are not clearly defined, they can lead to problems when stakes are high and options are limited. The best CBO-CEO relationships are those where authority, information, and trust move together from the beginning.

This means the CBO should have explicit decision-making authority, access to key information, and a strong relationship with the CEO. A well-defined CBO role, with clear ownership and responsibilities, helps the CBO absorb pressure instead of becoming a source of it. The board should also be engaged early on, with clear agreements on deal principles and designated board members who can consult with the CBO during negotiations.

Ultimately, the CEO should not be completely removed from the deal process, but rather should be closely involved in a structured way, allowing the CBO to focus on process and strategy.