Blog
Navigating Funding Challenges in Cell and Gene Therapy Development
Manfred Seow, Director, APAC Cell and Gene Therapy Center of Excellence, IQVIA
May 14, 2025
Introduction

In the rapidly evolving sector of cell and gene therapies, securing adequate funding is crucial as the asset is moved through the development continuum, to bring these life changing treatments to patients. The development of these advanced therapies requires significant financial investment due to the complexity of research, the clinical trials, manufacturing processes and the overheads associated with the therapies as they become commercially available (Exhibit 1).1 As we progress along 2025, the landscape of funding for cell and gene therapies continues to evolve, presenting both opportunities and challenges.

Exhibit 1: Cell and gene therapy pathway from discovery to treatment

Challenges

Despite several success stories in the cell and gene therapy sector, numerous challenges persist that can potentially impede the growth and innovation within the field.

 

  • Competition for Funding: Over the past few years, the cell and gene therapy sector has seen a surge in investment. In 2024, the sector attracted $15.2 billion in funding, reflecting a 30% year-over-year increase.2 With an increasing number of cell and gene therapy assets in development, securing venture capital and government grants has become increasing competitive. The reduction in private investments in biotech and biopharma in recent years has further exacerbated this challenge. Developers must differentiate themselves and demonstrate the potential of their therapies to stand out in this competitive landscape.

     

  • Risk aversion by investors: Investors often exhibit risk aversion due to the high costs and potential risks associated with cell and gene therapies. The high-risk, high-reward nature of cell and gene therapies can deter potential backers. These therapies often require substantial upfront investments with uncertain outcomes. The complexity and novelty of the technologies involved add to the perceived risk, making it difficult for companies to secure long-term funding. Investors may be hesitant to commit large sums of money due to the elevated costs and potential risks associated with these therapies, including uncertainties around their long-term efficacy and safety.

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  • Government Investments and public-private partnerships: Government incentives and public-private partnerships play a crucial role in supporting the development of cell and gene therapies. They provide funding to de-risk early research into new technologies, create a network of researchers, and offer resources and support to academics and start-ups working on emerging technologies. These collaborative efforts have significantly contributed to the advancement of the cell and gene therapy field and will continue to do so. However, changes in political landscapes and economic conditions can impact on the availability of these funds. For instance, recent cuts to government-led funding schemes in the US have created additional challenges for biotech and biopharma companies.

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    Opportunities:
  • Strategic Planning: Developing a comprehensive end-to-end strategy for cell and gene therapy development requires a well-coordinated, multi-disciplinary team of subject matter experts. This approach allows the integration of considerations from various stages of development into the initial decision-making process, thereby reducing the risks associated with program advancement.

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  • Collaborations, Partnerships and Alliances: Collaborations between various stakeholders globally, including academia, industry, and government, can help pool resources and expertise. These partnerships can drive innovation and facilitate the development of new therapies by sharing the financial burden and mitigating risks. Other alternatives include, and not limited to, licensing agreements, co-development partnerships, joint ventures, as well as spinning off NewCo.

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  • Alternative funding strategies: Raising funds for cell and gene therapy development presents unique challenges. Traditional funding models may not be sufficient to support the high costs and long development timelines associated with these therapies. Therefore, it is imperative to explore alternative funding strategies and leverage government incentives to support the continued growth and success of cell and gene therapies.

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    There are initiatives frequently established through government investment but can also be developed or evolved into public-private partnerships between government, academic institutions, and industry.

    Initiatives provide funding for research projects to de-risk early research into new technologies, create a knowledge network of researchers, and provide other resources and support to academics and start-up companies engaged in early-stage research with emerging technologies (Exhibit 2).1

    Exhibit 2: Selected cell and gene therapy research centers and initiatives

  • Leveraging available incentives and advocating for supportive policies are essential for sustaining investment in this field. Exhibit 3 summarizes key government grants and initiatives aimed at supporting research and development in cell and gene therapy across various countries.

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    Exhibit 3: Strategic initiatives for cell and gene therapy trials

    Conclusion

    The road to secure funding is not without hurdles. Navigating the funding challenges in cell and gene therapy requires a multifaceted approach that includes strategic planning, collaborations, and exploring alternative funding strategies.

    IQVIA's Cell and Gene Therapy Center of Excellence brings complementary strategic guidance plus delivery excellence to help sponsors navigate operational challenges including site selection and start-up, regulatory requirements, and intense logistical demands of product distribution and biospecimen collection. With the right data and insights, sponsors can enhance their operational capabilities and may increase their chances of securing the necessary funding opportunities to advance their projects, bring value and enhance patient outcomes.

     

    References
    1. IQVIA Institute for Human Data Science. Strengthening Pathways for Cell and Gene Therapies. Available at: https://www.iqvia.com/insights/the-iqvia-institute/reports-and-publications/reports/strengthening-pathways-for-cell-and-gene-therapies.
    2. Alliance for Regenerative Medicine – State of the Industry Briefing 2025 – 2025 Cell & Gene State of the Industry Briefing. Available at: https://alliancerm.org/arm-event/sotibriefing/.
    3. AusBiotech Ltd. Government Assistance. Available at: https://www.ausbiotech.org/policy-advocacy/government-assistance.
    4. AusBiotech Ltd. Australia's Cell and Gene Catalyst. Available at: https://www.ausbiotech.org/programs/australias-cell-and-gene-catalyst.
    5. Singapore Economic Development Board (EDB). Singapore Budget 2025: How Businesses Are Getting Help with Costs, Competition, and Transformation. Available at: https://www.edb.gov.sg/en/business-insights/insights/singapore-budget-2025-how-businesses-are-getting-help-with-costs-competition-and-transformation.html.
    6. Agency for Science, Technology and Research (A*STAR). Editing the Basics. Available at: https://research.a-star.edu.sg/articles/features/editing-the-basics/.
    7. Agency for Science, Technology and Research (A*STAR). ARP Issue 45. Available at: https://research.a-star.edu.sg/wp-content/uploads/2025/03/ARP-Issue-45-web-upload.pdf.
    8. Korean Drug Development Fund (KDDF). Who We Are. Available at: https://www.kddf.org/en/about/whoweare.
    9. Korean Biomedical Review. KDDF to Back Over 1,200 Drug Development Projects by 2030. Available at: https://www.koreabiomed.com/news/articleView.html?idxno=27315.
    10. Cell and Gene Therapy Catapult. How We Work. Available at: https://ct.catapult.org.uk/p/how-we-work.
    11. Cell and Gene Therapy Catapult. About Us. Available at: https://ct.catapult.org.uk/p/about-us.

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