Cell and Gene Therapy Investment Plummets 66% as Industry Shifts to Lower-Risk Strategies
核心洞察
Cell and gene therapy (搜索) venture capital deals dropped by 66% from 2021 to 2025, with average deal values falling to just $60 million according to GlobalData (搜索) analysis.
Major pharmaceutical companies including Galapagos and Takeda (搜索) have abandoned their cell therapy divisions, pivoting toward less risky modalities like antibody-drug conjugates (搜索).
Despite funding challenges, Eli Lilly invested over $2 billion in CGT acquisitions including MeiraGTx, Adverum Biotechnologies, and Rznomics (搜索) for specialized therapeutic applications.
The cell and gene therapy (搜索) (CGT) sector is experiencing a dramatic funding contraction, with venture capital deals plummeting 66% from 2021 to 2025, according to a new GlobalData (搜索) report. This sharp decline reflects broader industry caution as companies pivot toward lower-risk investment strategies amid challenging market conditions.
Funding Landscape Shifts Dramatically
The data reveals a stark transformation in CGT investment patterns. Overall venture capital deals across all sectors dropped approximately 61% during the same period, but CGT experienced an even steeper decline. The average value of CGT venture capital deals has fallen to just $60 million in 2025, highlighting the sector's struggle to attract substantial funding.
This contrasts sharply with other therapeutic areas, exemplified by Kailera Therapeutics (搜索) raising $600 million to fund a Phase III trial of its weight loss drug. The disparity underscores how investors are gravitating toward derisked targets, particularly obesity (搜索) drugs and antibody-drug conjugates (搜索) (ADCs).
Industry Consolidation and Strategic Exits
Several major pharmaceutical companies have made strategic decisions to exit the CGT space entirely. In November, Galapagos wound down its cell therapy division after failing to find a buyer for the unit. Similarly, Japanese pharmaceutical giant Takeda (搜索) abandoned its cell therapy research, redirecting resources toward small molecules, biologics, and ADCs.
The report identifies that half of CGT venture capital activity now occurs at Series B stage, when companies typically transition from platform validation to clinical studies. This shift represents a more conservative approach compared to the sector's peak activity in 2021, when significant enthusiasm drove investment in earlier-stage ventures.
Big Pharma Maintains Strategic Interest Through Acquisitions
Despite the funding downturn, large pharmaceutical companies continue demonstrating selective interest in CGT technologies, primarily through strategic acquisitions rather than internal development. Irena Maragkou, senior healthcare researcher at GlobalData (搜索), noted that "such acquisitions are becoming increasingly modality-driven and focused on platforms, scalable manufacturing systems, and specialised capabilities that can support portfolio-wide CGT expansion efforts."
Eli Lilly exemplifies this acquisition-focused strategy, investing heavily in specialized CGT assets. The company spent $475 million on a licensing deal with MeiraGTx for ophthalmology gene therapy development, followed by a $260 million acquisition of Adverum Biotechnologies in October. In May 2025, Lilly committed $1.3 billion to acquire Rznomics (搜索), which develops RNA-based gene therapies for sensorineural hearing loss (搜索).
Therapeutic Focus Areas Evolve
The investment landscape shows distinct patterns across therapeutic areas. Oncology-focused CGT deals remain concentrated in early research and development, particularly gene-modified cell therapies. However, transactions involving non-oncology CGT assets have become more mature and diversified, suggesting broader therapeutic applications are gaining traction.
Market Outlook Despite Current Challenges
Despite current funding constraints, the long-term outlook for CGT remains positive. Maragkou concluded that "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."
The analyst emphasized that biotech companies need strategic approaches to navigate this environment, focusing on "differentiated technologies and build execution capabilities to deliver clinical and commercial impact." This suggests that while funding may be scarce, companies with proven platforms and clear clinical pathways may still attract investment.
The current market dynamics reflect a maturation of the CGT sector, where initial enthusiasm has given way to more measured evaluation of commercial viability and manufacturing feasibility. As approved CGT therapies continue to enter key markets including the US and Europe, the industry faces the dual challenge of demonstrating commercial success while addressing the complex regulatory and manufacturing hurdles that have historically limited sector growth.