Gene therapy is a technique that modifies a person's genes to treat or cure disease. It's estimated that the global gene therapy market will reach $2.7 billion by 2026.
After the FDA lowered the entry barrier for mRNA vaccines (thanks to Covid), biotech companies saw an opportunity in gene therapy. Now, they’re doubling down on it.
For biotech companies, the logic is simple. Faster FDA approvals mean a shorter time to market for a new drug or therapy. This dramatically reduces the time frame and returns on investment for biotech companies and their investors.
Historically, clinical trials take years when the therapy generates no revenue. But with mRNA vaccines, some pharmaceutical companies went from testing to Emergency Use Authorization (EUA) and revenue generation in a few months.
There were 2,900 clinical trials for gene therapies from 1989 to 2018. Last year, it was about 2,500, reports the Center for Biologics Evaluation and Research.
As such, the biotech industry has recently seen record venture capital and private equity investment, accelerating growth for some companies.
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On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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