The Impact Of Lyrica: From Research To Northwestern University’s Endowment Success

Three decades ago, a lab in Evanston, Illinois began research on a new pill. This innovative pill, known as Lyrica, originated from the campus of Northwestern University. Today, Lyrica stands as Pfizer's best-selling drug, generating an impressive $4.8 billion in revenue in 2015 alone. While many medications come with various side effects, Lyrica's most notable consequence is its significant contribution to Northwestern's financial success, resulting in it possessing the eighth-largest college endowment in the United States.

The journey of discovering and developing Lyrica commenced in the late 1980s when chemistry professor Richard Silverman designed the molecule pregabalin, which was synthesized by visiting fellow Ryszard Andruszkiewicz. Northwestern found itself in an advantageous position, benefiting from a federal law passed shortly before their work began. This law allowed universities to retain the profits from inventions funded by government grants, paving the way for substantial financial gains.

It is quite rare for a drug discovery to achieve such remarkable sales success. During Henry Bienen's presidency at Northwestern, the university made a groundbreaking decision regarding its share of Lyrica’s royalties. In 2007, Northwestern sold the rights to about half of its Lyrica royalties for $700 million. Unlike most schools that typically use such funds for one-time expenses, Bienen chose to invest every penny into the university's endowment. This strategic decision led Lyrica to account for approximately 18% of Northwestern's impressive $10 billion endowment.