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Published on: June 16, 2023
Biopharmaceutical pipeline funded by venture capital firms, 2014 to 2024
So-Yeon Kang1, Mingqian Liu2, Jeromie Ballreich3
1Department of Health Management and Policy, Georgetown University School of Health, Washington, DC 20007, United States.
Abstract:
Venture capital (VC) firms fund biopharmaceutical research and development (R&D) while incurring substantial financial risk. VC firms seek to invest in clinical areas with the greatest potential for financial return. Using a combination of data for clinical trials and VC investment deals between January 2014 and March 2024, we found that approximately 75% of VC investments were allocated to clinical trials studying small-molecule drugs compared to biologics or gene therapies, without substantial changes over the study period. Most of VC firms' investment in biopharmaceutical R&D was concentrated in phase 1 and phase 2 clinical trials. This trend has increased in recent years, with phase 1 trials accounting for nearly half of total deals and capital investments in 2023. VC investments were concentrated in several therapeutic areas, including cancer.
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