Cell and gene therapy investment strategy pivots as funding dries up

Companies looking to propulsion into the cistron therapy (CGT) assemblage are navigating a much selective backing scenery amid a wider downturn successful task superior investment.

According to a study by GlobalData, task superior deals dropped by astir 61% from 2021 to 2025, and the fig of CGT deals dropped by 66% successful the aforesaid period.

The study identifies that fractional of CGT task superior enactment occurs successful Series B, the signifier astatine which companies usually displacement from level validation to objective studies. This little risky strategy reflects a broader inclination successful the pharma manufacture this twelvemonth of going for derisked targets, specified arsenic obesity drugs and antibody-drug conjugates (ADC).

Not lone has the frequence reduced, but CGT deals are little than those seen successful different modalities. The mean worth of CGT task superior deals is conscionable $60m successful 2025, truthful far, arsenic per GlobalData, portion Kailera Therapeutics raised $600m to money a Phase III proceedings of its promising value nonaccomplishment drug.

Venture superior enactment for the CGT assemblage reached highest enactment successful 2021. At the time, determination was important buzz for the modality’s development. While determination are galore approved CGT therapies successful cardinal markets specified arsenic the US and Europe, commercialized challenges person meant immoderate companies person turned distant from the space.

In November, Galapagos coiled down its compartment therapy part aft failing to merchantability the unit. Japanese pharma Takeda besides abandoned its compartment therapy research, pivoting alternatively towards tiny molecules, biologics and antibody-drug conjugates (ADCs).

There is inactive involvement successful the abstraction from biopharma, though they are mostly looking to incorporated CGT technologies into their pipelines done acquisitions alternatively than in-house development.

Irena Maragkou, elder healthcare researcher astatine GlobalData, said: “Such acquisitions are becoming progressively modality-driven and focused connected platforms, scalable manufacturing systems, and specialised capabilities that tin enactment portfolio-wide CGT enlargement efforts. However, large pharma continues to show willingness to wage a premium for immoderate late-stage oregon clinically validated assets erstwhile they align with semipermanent strategical objectives and portfolios.”

Eli Lilly has been peculiarly progressive successful the past fewer months, spending $475m connected a licensing woody with MeiraGTx to make an ophthalmology cistron therapy. This was not the large pharma company’s lone woody successful ophthalmology cistron therapies, with the institution having laid retired much than $260m to get Adverum Biotechnologies successful October. In May 2025, the drugmaker besides earmarked $1.3bn to bargain Rznomics, a institution processing RNA-based cistron therapies for sensorineural proceeding loss.