Scientology’s Most Successful VC 

Robert Duggan’s first venture was mowing lawns as a teenager in California. Today, he’s a multi-billionaire investor and the Church of Scientology’s biggest donor.

Duggan launched and sold several successful businesses early in his career, including a children’s embroidery company, a bakery business, and a computer services firm. 

In 2006, Duggan began investing in a relatively unknown cancer therapeutics company called Pharmacyclics (PCYC). When the FDA rejected Pharmacyclics’ proposed anti-cancer drug in 2008,  the company found itself on the brink of collapse and its CEO resigned. Duggan assumed leadership and refocused the company’s R&D efforts, prioritizing the development of a previously-overlooked cancer treatment molecule. At the same time, he continued to accumulate significant shares in PCYC, mostly at prices between $1 to $8 per share. 

By the time the company bounced back, Duggan was the company’s largest investor. In 2015, PCYC was sold to AbbVie (ABBV) for $261.25 per share (a $21 billion valuation). 

Duggan earned a whopping $3.5 billion from that sale – one of the biggest paydays to ever result from a public company buyout. But he didn’t stop there. Duggan continued to place huge bets on pharmaceutical companies throughout the next decade, with varying success.

Achaogen (AKAO)

Achaogen (AKAO) was an antibiotics company that developed an FDA-approved drug for urinary tract infections. Between 2017 and 2018, Duggan purchased over $30 million of AKAO stock on the open market, despite the fact that antibiotics had lost significant favor among pharmaceutical companies and investors due to the availability of cheap generics. AKAO filed for bankruptcy in April 2019, about one month after Duggan sold $2 million of AKAO stock.

“I have lost some money in anti-infectives, but I learned my lesson,” Duggan said in an interview. “I believe it is a game that we can win and a game that should be played by somebody.”

Summit Therapeutics (SMMT)

Shortly after AKAO went bankrupt, in December 2019, Duggan was appointed CEO of another company in the business of developing antibiotics: Summit Therapeutics (SMMT). 

Between 2020 and 2023, Duggan purchased SMMT stock four times through private placement: $47 million on November 6, 2020, $59 million on May 12, 2021, $92 million on August 16, 2022, and $395 million on March 6, 2023.

Notably, a few months after each purchase, the stock spikes noticeably higher. For example, four months after the August 16, 2022 private placement, on December 6, 2022, SMMT announced a $5 billion deal to license another company’s cancer therapy, giving SMMT the right to develop and commercialize its drug in the United States, Canada, Europe, and Japan.

This announcement sent SMMT stock soaring 57% in pre-market trading.

Pulse Biosciences (PLSE)

Robert’s latest investments have been in a new company, Pulse Biosciences (PLSE). 

Pulse is a medical technology company focused on developing and commercializing dermatologic therapies. 

Duggan has served as chairman of PLSE’s Board of Directors since November 2017.

In total, Duggan has invested over $250 million into PLSE over the past six years.

In addition to Duggan, Patrick Danahy (CEO) purchased $35k of stock on November 16, 2023, and Mitchell Levinson (CSO) bought $105k on November 15, 2023.

PLSE has filed an FDA submission for a cardiac surgical clamp with an expected clearance by Q1 2024. PLSE also expects to commence clinical trials of its nsPFA catheter application by the end of 2024. 

Given the size and recency of Duggan’s insider purchases, we believe this is a stock worth looking into. Keep in mind that medical device companies are highly volatile due to the long and unpredictable path to FDA approval.

As always, do your own research and this is not financial advice.

Oh yeah, if you’re also interested in Scientology and Duggan’s involvement, check out this article here.

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