Clinical trial registrations have declined by 20% year-over-year according to analysis of ClinicalTrials.gov and Australian/New Zealand registries, with oncology trials experiencing the most severe impact at approximately 60% reduction.
Biotech companies are increasingly shifting early-phase trials to ex-US locations including Australia, Asia-Pacific, Eastern Europe, and China due to favorable regulatory environments, reduced costs, and faster timelines.
The funding environment has returned to 2019 levels following the post-COVID bubble, with an 18% reduction in publicly traded biotechs over the past 40 months making it extremely difficult to raise capital for Phase II and III studies.
Despite the overall decline, obesity and RNA-based therapeutics continue to retain investor interest and show resilience in the current challenging market conditions.