Will Ukraine Conflict Affect Cell and Gene Therapy? Short Term, Maybe, Long Term, No.

The Ukraine conflict may have slowed the normally fast-moving cell and gene therapy space. There was only one significant finance arrangement in the fortnight since the invasion, according to Kalorama Information. Kalorama Information tracked deals in its report Cell and Gene Therapy Deals: Financings, Partnering, M&A, Technology Transfers, IPOs, and Other Developments. Kalorama does not expect this trend to continue: There was 70 billion in deals last year and patterns of quarterly financing last year suggest third and fourth quarters were the highest deal-making quarters of the year.

The transaction came from a government investment — Cell and Gene Therapy Business Outlook reported that R&D consortium OPTI-STEM received €7M from French govt. and Bpifrance, €800k from Occitanie Region; to optimize the production of mesenchymal stem cells (MSCs), to democratize access to them and allow the diversification of therapeutic applications of this type of cell and its derivatives, such as exosomes

This came off a month of January where there was over 7 billion in financing deals. For the one month of January 2022, there was a total of $7.1 billion in disclosed funding ($3.9 billion VC/private, $2.5 billion acquisitions, $435 million strategic investments, $250 million SPAC/IPO), putting the quarter and year on track to potentially see another increase.

Kalorama is not concerned. In fact any slowing now suggests deals under consideration will be executed later. In concert with the technologies progressing and the proven benefits, CGT-related companies have received growing amounts of funding—and it appears likely that the trend will continue. The total CGT funding increased from $9.6 billion in Q1 2021 to $14.3 billion in Q4 2021, with a large spike in Q3 due to a few particularly large acquisitions. Total funding for the year in 2021 was at minimum $70.8 billion.

Technology/Research and strategic collaborations, venture capital or private investment, acquisitions, merger, and licensing were the most common deals. Other types of deals included spinouts, restructurings, cancellation of deals and litigation settlements. These deals are are tracked though Jan 2022 in Kalorama’s report and continually tracked in Kalorama’s newsletter, Cell and Gene Therapy Business Outlook.

Kalorama’s Cell and Gene Therapy Business Outlook tracks the cell and gene therapy market on a regular basis. It can be purchased at http://www.cellandgenetherapybusinessoutlook.com.

About Kalorama Information:
Kalorama Information, part of Science and Medicine Group, is the leading publisher of market research in healthcare areas, including in vitro diagnostics (IVD), biotechnology, medical devices, and pharmaceuticals. Science and Medicine Group supports companies seeking to commercialize the rapidly changing marketplace at the intersection of science, medicine, and technology. Comprised of industry-leading brands, Science and Medicine Group serves analytical instrument, life science, imaging, and clinical diagnostic companies by helping them create strategies and products to win markets and provide platforms to digitally engage their markets through a variety of innovative solutions. Kalorama Information produces 30 reports a year. The firm offers a Knowledge Center, which provides access to all published reports.