Strategic Focus Drives Evolution in Cell and Gene Therapy Funding Landscape

December 9, 2025—The cell and gene therapy (CGT) sector is undergoing a strategic transition as companies adapt to a more selective and strategy-driven funding landscape, according to an analysis by the Pharma Strategic Intelligence team at GlobalData.

While venture capital (VC) investment in CGTs has seen a decline after peaking during the COVID-19 pandemic—a trend that mirrors the broader biotech ecosystem—CGT-focused deals have remained relevant.

Capital Deployment Concentrates on Clinical Execution

GlobalData’s report, “Cell and Gene Therapy Investment Trends,” reveals a high concentration of VC activity at the Series B stage, accounting for approximately 50% of total CGT venture capital deals. This focus highlights an industry-wide prioritization of assets that are transitioning from platform validation to the crucial stage of clinical execution.

Capital deployment in the CGT space remains heavily concentrated among a small group of major investors, including RA Capital, ARCH Venture Partners, Alexandria Ventures, OrbiMed, and Fidelity International Strategic Ventures. These firms have each committed more than $3.5 billion in cumulative deals, signaling a deep, yet selective, commitment to the sector.

Big Pharma Leverages Acquisitions for CGT Integration

Major pharmaceutical companies, including Johnson & Johnson, AstraZeneca, Novartis, Bristol Myers Squibb, Roche, and Eli Lilly, are actively integrating CGT technologies into their pipelines. They primarily achieve this through strategic merger and acquisition (M&A) deals.

Senior Healthcare Researcher Irena Maragkou noted that these acquisitions are increasingly modality-driven, focusing on acquiring platforms, scalable manufacturing systems, and specialized capabilities to support portfolio-wide CGT expansion efforts. Furthermore, big pharma has shown a willingness to pay a premium for clinically validated, late-stage assets that align with long-term strategic objectives.

While oncology-focused CGT deals remain skewed toward early research and development and gene-modified cell therapies, the M&A activity focused on non-oncology CGT assets is becoming more mature and diversified.

Outlook: Preparedness for Sector Growth

Despite the necessary shift in funding strategy, the long-term outlook for the CGT market remains exceptionally strong, with the sector expected to grow at a rate of 34.2% by 2031.

Maragkou concluded that as therapeutic CGT approvals increase, biotech companies must be strategic in investing in differentiated technologies and must build robust execution capabilities to address sector-specific challenges, such as regulatory complexity and manufacturing scalability, to deliver clinical and commercial impact.