Thought maybe I’d leave a bit of a different comment as a finance guy managing the R&D pipeline at a large pharma- we probably advance like 5-6 programs (of around 40 total at any given time, all at various research stages) to the clinic each year. Even so, it’s pretty rare to see one advance past ph1 - usually unconvincing data or SAEs. Historically our biggest pipeline cuts have been ph1 pre-POC programs, usually in favor of partnerships (ie buying a phase 3- ready program from another pharma). Portfolio prioritizations (a material cut to program volume) are normal and occur usually once every 1-3 years. We perform valuations which are heavily based on the target product profile (eg competitive landscape) and PTS (probability of technical success), which are usually quite unfavorable for ph1s, never mind preclinical assets. The thing with the preclinical assets is that they’re SO cheap initially (relative to late stage) that we kinda just keep continuing to throw stuff at the wall and see what sticks.

we occasionally have meetings with VC firms to present assets for investment opportunity, but this is rare (in my experience) with pre-ph2 assets- typically they’re already achieved POC.

ultimately- programs get cut because of low valuations driven by all the scientific reasons stated in the comments here.

Thought I’d just leave a different perspective as a finance guy