Cell and Gene Therapy Investments Reach $5 Billion in Q1 2024, $35 Billion Total in 2023

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Cell and gene therapy (CGT) companies continue to draw significant investments, although annual funding has decreased from over $70 billion in 2021 to $40 billion in 2022, and down to an estimated $35 billion in 2023. In the first quarter of 2024, funding surpassed $5 billion. This trend reflects a broader tightening of funding environments across various industries. Kalorama Information presents these and other CGT-related insights in companion market research reports, Cell and Gene Therapy Deals Analysis: Financings, Partnering, M&A, Tech Transfers, IPOs/SPACs, Other Deals, 2021-2024 and Cell Therapy and Gene Therapy Markets (Markets by Disease Type), 2023-2029.

Kalorama’s Cell and Gene Therapy Deals Analysis, 2021-2024 highlights the significant deal-making activities that have taken place from Q1 2021 to Q1 2024, providing valuable insights for companies and stakeholders looking to understand and leverage the trends shaping this burgeoning field. The report focuses on:

• Venture Capital and Private Funding: For CGT companies, often startups, this tighter funding has led to smaller average funding rounds, despite the number of deals remaining relatively steady at 10 to 20 per month. Although the frequency of these deals is trending downward in 2024, they highlight the resilience and sustained interest in CGT.
• Mergers and Acquisitions (M&A): M&A activity, while accounting for some of the most funding, has been highly inconsistent. Nevertheless, the industry has seen a rise in collaborative deals, licensing agreements, and manufacturing/supply chain partnerships. Collaboration payments, although lower in immediate value, come with significant potential milestone payments, ranging from $500 million to $1 billion per quarter.
• Funding Trends and Market Maturity: These patterns suggest a maturing industry, albeit one facing challenges. Companies are downsizing or closing due to the fluctuating funding landscape. Many are also turning to loans rather than equity investments, showcasing creative funding strategies to navigate the tight market.

Key Takeaways:

• Funding Trends: Annual investments in CGT have declined since 2021, reflecting a tighter funding environment.
• Deal Types: While M&A activities are volatile, collaborative and supply chain deals are on the rise.
• Market Growth: The CGT market is expanding into various medical fields, driven by advancements in technology and a growing number of companies.
• Industry Maturity: Despite funding challenges, the CGT industry is maturing, with many companies finding innovative ways to secure necessary funds.
• Clinical and Market Expansion: Cell and gene therapies offer promising treatments for various acquired illnesses such as cancer, diabetes, Parkinson’s disease, and genetic disorders. The market is expanding into new medical domains, including autoimmune diseases, cardiovascular conditions, musculoskeletal disorders, dermatological ailments, and more.
• Overall Industry Growth: Despite the dip in annual funding totals, the CGT industry is growing. New tools like CRISPR and next-generation sequencing (NGS) have lowered entry barriers, leading to over 1,500 companies now operating in this space. The steady increase in approved therapies with proven track records further solidifies the industry’s potential.

As the CGT industry continues to evolve, it remains a promising and dynamic field, with significant potential for growth and innovation.

For more information, purchase Kalorama Information’s companion 2024 cell and gene therapy reports and attend our FREE WEBINAR on July 25.