Global RM financings poised to break records

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Global fundraising by cell and gene therapy developers more than doubled during the first half of 2020, compared with the first half of 2019.

Between January and June, these companies raised US$10.7B — a 120 per cent increase year on year, and exceeding the total amount raised in all of 2019, according to the Alliance for Regenerative Medicine (ARM)’s latest report Innovation in the Time of COVID-19.

Across the board, public and private financings are on pace to match or exceed recent years, with total financings likely to outstrip the $13.5B record for financings set in 2018. And for the first time ever, there are more than 1,000 therapeutic developers active in this space worldwide.

Comparing year on year financing data from H1, gene and gene-modified cell therapies increased 81 per cent; cell therapies increased 387 per cent; and tissue engineering increased 25 per cent. Overall, the total global financing has increased 120 per cent year on year from H1 2019.

Initial public offerings (IPO) totalled $1.4B in the first half of 2020, which is 2.5 times the IPO total for all of 2019. Similarly, follow-on public offerings (FOPO) totalled $1.6B, surpassing the $1.5B raised in FOPOs last year. Private companies have also contributed large sums, with $3B in venture capital raised in the first half of 2020 versus $4.1B in venture capital investment for the 12 months of 2019.

Janet Lambert, CEO, Alliance for Regenerative Medicine, noted, “While the COVID-19 pandemic is far from over – and the long-term impact on the sector remains to be seen – the first half of 2020 was, without a doubt, the strongest six months of regenerative medicine and advanced therapies fundraising to date. While we may begin to feel the impact of regulatory and clinical challenges brought on by COVID-19, the sector has already demonstrated remarkable resilience in the face of global adversity.”

Janet Lambert will be featured in AusBiotech’s Australasian Biotechnology journal, to be released in early October, and is a keynote speaker at AusBiotech + Invest 2020 where she will discuss the Global state of the industry: The financial, clinical, and scientific landscape for cell and gene therapies – investor insights for Australia.

Janet will be joined at AusBiotech + Invest 2020, Australia’s largest life science conference, by keynote Paul Brennan, who will discuss PolyNovo: An Australian success story; and regenerative medicine panels that will showcase Australian developments in regenerative medicine; Observations on the international regenerative medicine landscape; and The future of gene and cell therapies in Australia. Register now to engage with current and future biotech leaders and to hear the latest insights.

AusBiotech + Invest 2020 includes Australia Biotech Invest & Partnering 2020, AusBiotech’s leading one-day investment conference focused on trends in life sciences investment. It will provide investors with a rare chance to hear from senior executives of up to 30 emerging and established (ASX-listed and private) companies to evaluate their investment opportunities. Investors will also benefit from informative keynotes delivered by both Australian and international key opinion leaders, discussing global life science industry trends and market updates. Investor registration is free. Register here.

AusBiotech is a member of ARM, an international community of over 350 small and large companies, non-profit research institutions, patient organisations, and other sector stakeholders dedicated to realising the promise of regenerative medicine for patients around the world.