In today’s biotech market, where IPOs have slowed and investor caution is high, many startups are struggling to stay afloat. But John McDonough sees opportunity in the turbulence.
With decades of experience and billions in value created, the Sunbird Bio executive chairman and CEO is proving that success in biotech isn’t about chasing exits—it’s about building companies with staying power.
During his more than 30 years in biotech, McDonough has led two IPOs, raised more than $500 million, and built companies valued at over $6 billion. Now, at Sunbird Bio, he is addressing one of the significant challenges of diagnosing neurodegenerative diseases like Alzheimer's disease, Parkinson's disease and other neurological disorders earlier by developing a straightforward highly precise blood test.
But this isn’t just a one-shot bet on a single therapeutic area. Sunbird Bio’s platform technology has the potential to extend into areas such as oncology, infectious diseases, and more. The challenge? To sequence Sunbird Bio’s platform and pipeline expansion strategically. McDonough told Cure how the company is doing it in an exclusive interview.
1. Focus First, Expand Smartly
Startups often fail when they attempt to do too much too quickly. However, they can also struggle if they restrict themselves to a single niche for an extended period. “With a platform technology, you can go in a hundred directions,” said McDonough. “But if you try to do everything at once, you fail. If you never expand, you stall. The winners get the sequence right.” Sunbird Bio chose to focus on neurodegenerative diseases first, not because it was the only available application but because, in its view, the therapeutic area represented the smartest entry point because of at least three metrics and its opportunity for leadership.
Significant unmet need: Current diagnostic tools, such as PET scans and spinal taps, are often too expensive, invasive, or unavailable for most patients.
Immediate pharmaceutical interest: Drug developers require improved biomarker-driven patient selection – particularly following the recent approvals of Alzheimer’s drugs.
Regulatory momentum: Blood-based biomarkers are gaining traction with the FDA, creating an optimal opportunity for market entry.
“We started with neurodegenerative diseases because we knew we could lead and define the category. But the long-term vision has always been bigger,” he said. Once Sunbird’s first diagnostic tests gain traction, the company plans to expand into other areas where protein biomarkers drive disease detection, including cancer, cardiovascular disease, and autoimmune disorders.
2. Fundraising Isn’t About Time – It’s About Milestones
Biotech startups must do more than just raise money to survive. They need to secure capital to create value by achieving strategic milestones that demonstrate progress. McDonough said, “A lot of entrepreneurs think, ‘I raised 18 months of cash.’ Okay, but what are you doing with that money? You need to hit a milestone that increases your valuation and opens the next door.”
He added, “Investors aren’t just funding ideas anymore. They’re funding a roadmap. If you can’t show how this round gets you to the next level, you won’t raise the next round.” That’s why McDonough has always linked capital raises to clear, measurable value creation – whether through clinical data, regulatory achievements, or commercial partnerships.
3. Build for Longevity, Not Just Acquisition
Every biotech founder encounters a choice: to create a company that endures or to establish one aimed at sale. McDonough argues that companies that focus only on being acquired often fail because they are not in control of when (or if) a buyer will come. “The biggest mistake biotech leaders make is assuming someone will buy them. You can’t control that. But if you build a great company, buyers will come to you,” he said. That’s why Sunbird Bio isn’t just positioning itself as a diagnostic startup, it’s establishing itself as a long-term player in precision medicine. This means McDonough is positioning Sunbird Bio to:
Take charge of its growth trajectory instead of waiting for a pharmaceutical company to dictate its future.
Build a broad technology platform where diagnostics become the first step toward guiding personalized treatment approaches.
Expand its footprint from neurodegeneration to oncology, immunology, and beyond.
“We’re solving one problem today. But we’re building something much bigger than that,” McDonough said. The companies that succeed aren’t waiting for an acquisition – they’re the ones that are too valuable to ignore.
4. Leadership Is Alignment
A biotech startup isn’t just about its IP – it’s about getting investors, executives, and employees to row in the same direction. McDonough sees his primary role as Chief Alignment Officer, ensuring that everyone from the boardroom to the lab is focused on the same goal. “If your investors expect a fast exit, but your team is building for the long haul, you’ve already failed. Misalignment can sink a company faster than a failed clinical trial,” he noted. For McDonough, this means:
Keeping investors informed – no surprises.
Making sure the leadership team is fully bought in on the vision – no conflicting priorities.
Fostering a mission-driven culture because great science alone doesn’t build a company.
To this end, Sunbird Bio recently expanded its leadership team by adding experts in diagnostics commercialization, which reinforces its focus on scaling the technology rather than just developing it.
“Alignment isn’t a one-time thing. It’s an ongoing process. If your company starts pulling in different directions, you lose momentum.”
Although the biotech landscape is rapidly evolving, McDonough believes his principles remain constant. For those who apply them well, success is not just possible – it might be inevitable.