The cell and gene therapy (CGT) sector is undergoing a transition as companies navigate a more selective and strategy-driven funding landscape, according to an analysis by the Pharma Strategic Intelligence team at GlobalData, a leading data and analytics company.
While venture capital (VC) investment in CGTs has declined in recent years after a peak during the COVID-19 pandemic, mirroring broader industry trends, CGT-focused deals within the biotech ecosystem have remained relevant.
GlobalData’s Strategic Intelligence report, “Cell and Gene Therapy Investment Trends,” reveals that approximately 50% of CGT VC activity is focused at the Series B-stage, when companies usually shift from platform validation to clinical execution.
CGT capital deployment remains highly concentrated among a small group of major investors, including RA Capital, ARCH Venture Partners, Alexandria Ventures, OrbiMed, and Fidelity International Strategic Ventures, each of which has committed more than $3.5 billion across cumulative deals.
Big pharmaceutical companies including Johnson & Johnson, AstraZeneca, Novartis, Bristol Myers Squibb, Roche, Eli Lilly and others are actively embedding CGT technologies into their pipelines through acquisition deals.
Irena Maragkou, Senior Healthcare Researcher at GlobalData, says: “Such acquisitions are becoming increasingly modality-driven and focused on platforms, scalable manufacturing systems, and specialized capabilities that can support portfolio-wide CGT expansion efforts. However, big pharma continues to demonstrate willingness to pay a premium for some late-stage or clinically validated assets when they align with long-term strategic objectives and portfolios.”
While oncology-focused CGT deals remain heavily skewed toward early R&D and gene-modified cell therapies, the merger and acquisition (M&A) activity centered on non-oncology CGT assets has become more mature and diversified.
Maragkou concludes: “As therapeutic CGT approvals increase, and the CGT market is expected to grow at a rate of 34.2% by 2031, companies must simultaneously prepare for sector-specific challenges such as regulatory complexity and manufacturing scalability. Therefore, biotech companies need to be strategic in investing in differentiated technologies and build execution capabilities to deliver clinical and commercial impact.”
