The Financial Potential of Gene Editing Therapy: Breaking Down the $18B Investment

In recent years, gene editing therapy has emerged as a promising approach to treating genetic disorders and diseases. With advances in technology, scientists are now able to precisely edit and modify genetic sequences to correct mutations or introduce new genes into cells. From CRISPR-Cas9 to base editing and beyond, various gene editing technologies have demonstrated their potential to treat genetic disorders and even cure diseases that were previously thought to be untreatable.

Despite the unprecedented challenges presented by a tumultuous global economy and a rapidly evolving industry, some companies have managed to secure significant investment and emerge as leaders in the field.

Investments in gene editing therapy startups have increased rapidly in recent years, with a total cumulative investment of $18.8 billion as of 2022. Despite a slowdown in 2022, the industry has seen an impressive growth trajectory over the past decade. In 2012, the investment in gene editing therapy startups was only $349 million, compared to $17 billion in 2021. This represents a remarkable increase in investment activity, driven by the promise of gene editing technology to significantly enhance human health.

However, there has been a notable slowdown in investment in 2022, with an annual investment of only $1.8 billion. This represents a significant drop from the previous year, which saw an investment of $5.5 billion. One possible explanation for the slowdown is the lingering effects of the COVID-19 pandemic and global economic downturn, which may have temporarily slowed down investment activity in the life sciences sector.

Another interesting trend is the drop in post-IPO funding for gene editing therapy startups. Post-IPO funding occurs after a company has gone public, and investors are looking to invest in companies with established track records of revenue and earnings. In 2022, post-IPO funding for gene editing therapy startups dropped by 81% compared to the previous year, from $2.4 billion to only $476 million.

Despite the recent slowdown and drop in post-IPO funding, the overall investment trend in gene editing therapy startups remains positive. The industry is still attracting significant amounts of funding from both venture capital firms and large pharmaceutical companies. With ongoing advances in gene editing technology and the potential for these therapies to address a wide range of diseases, the future of gene editing therapy looks bright.

Despite a decrease in overall investment activity in 2022, the gene editing therapy space remained an area of interest for investors. Notably, both established late-stage leaders and emerging players secured new funding, indicating the decline was related to a more widespread hesitation and not due to a lack of interest in gene editing therapy specifically. Some of the most significant funding rounds in gene editing therapy from 2022 include:

Tessera Therapeutics is a biotechnology company focused on developing a new class of gene editing tools that can modify the non-coding regions of the genome. In January 2022, Tessera announced that it had raised $300 million in Series C/D funding. The funding round was led by Blackstone Life Sciences, with participation from other investors. The company plans to use the funding to advance its technology platform and develop new gene editing therapies for a range of diseases.

ArsenalBio is a biotechnology company that is focused on developing new cancer treatments using gene editing technology. The company aims to create cell therapies that can attack cancer cells while leaving healthy cells untouched. In February 2022, ArsenalBio announced that it had raised $180 million in Series B funding. The funding round was led by RA Capital Management, with participation from other investors. The company plans to use the funding to advance its research and development programs and bring its therapies to clinical trials.

Neukio Biotherapeutics is a gene editing company that is developing new therapies for genetic diseases. The company is focused on using its gene editing platform to target specific genetic mutations that cause diseases. In March 2022, Neukio announced that it had raised $110 million in Series A funding. The funding round was led by 8VC, with participation from other investors. The company plans to use the funding to advance its research and development programs and bring its therapies to clinical trials.

SparingVision is a biotechnology company that is developing gene therapies for inherited retinal diseases. The company’s lead product candidate is SPVN06, which is designed to treat retinitis pigmentosa, a genetic disease that causes progressive vision loss. In April 2022, SparingVision announced that it had raised €44.5 million (approximately $50 million) in Series B funding. The funding round was led by Ysios Capital, with participation from other investors. The company plans to use the funding to advance its clinical development programs and prepare for regulatory filings.

Despite a temporary dip in investment activity for gene editing therapy companies in 2022, the overall trend in the market remains positive. The continued progress and promising results in ongoing clinical trials, along with the growing acceptance and adoption of gene editing technology, suggest a bright future for the industry. With significant investments from both private and public sources, gene editing therapies are poised to reform the field of medicine and improve the lives of millions of people worldwide. As such, investors can be confident in the long-term potential of gene editing therapy, and should continue to monitor this exciting and rapidly evolving sector for future opportunities.

Emersion Insights is pleased to offer our “Gene Editing Therapy Market Report” which provides a comprehensive analysis of the gene editing therapy industry.

Using a meticulous bottom-up revenue analysis approach, we have accurately measured the current market size and projected market growth until 2030. Our report also includes highly segmented market forecasts, giving investors and innovators a clear understanding of the specific sub-markets and their respective growth potential. Furthermore, we have conducted an in-depth analysis of market shares, identifying the key players and their market positioning. This information allows stakeholders to make informed decisions about investment opportunities, potential partnerships and business strategy.

If you’re looking for detailed insights into the gene editing therapy market, our report is an essential resource. Please contact our report author, Dr. Ulrik Kristensen, at hello@emersioninsights.io for more information.