As the global healthcare system refocuses after the pandemic, a recent report on the global R&D trend 2023 which was put together as a public service by the IQVIA Institute for Human Data Science and not derived from proprietary sponsor trial information has highlighted significant changes in therapeutic and geographic investments as well as the continued emphasis on novel mechanisms of action, cutting-edge development techniques, and expedited regulatory pathways to maximize the development and delivery of new therapies to patients.[1]
Global R&D spending by multinational pharmaceutical businesses has reached a new high of $138 billion in 2022, a 43% increase since 2017. These days, there is an increasing prevalence of close collaboration between research institutes, healthcare providers, and corporate partners. Yet the biopharmaceutical industry has seen substantial ups and downs in recent years due to a number of factors, including global economic performance, technological advancements, particularly in the areas of artificial intelligence and gene editing-based therapeutics, positive clinical outcomes, regulatory approvals, and emerging markets. Drug development R&D spaces that are creating innovative treatments and diagnostics using cutting-edge technologies had successfully attracted the attention of investors more and more. Venture capital (VC) investment in the biopharmaceutical industry has been noted to have increased significantly since the pandemic. Private equity firms have emerged as the major participants in biopharma investment, especially in later-stage startups with promising pipelines. Consequently, while merger and acquisition (M&A) activity in the biopharma sector continues to be significant. Biopharma firms that are developing novel therapies and diagnostics with state-of-the-art technology are given preference when it comes to receiving venture capital funding. In the case of gene therapy-based pharmaceuticals, for example, 'Verve pharmaceuticals' raised $250 million in Series D funding (stage) in October 2023 to advance its gene editing medications for cardiovascular disorders. Biopharma investment is expanding beyond of traditional hubs like the US and Europe, with a growing interest in Asia and other emerging countries. Fate Therapeutics, for example, raised $240 million in Series E funding (stage) in October 2023 to enhance its cell-based immunotherapy platform for cancer and autoimmune illnesses. More in trend, AI-powered Diagnostics, for example, Owkin in October 2023 received $180 million in Series C funding (stage) to build AI-powered tools for drug discovery and clinical trial design. For instance, in October 2023, Pear therapies received $150 million in Series D funding (stage) to explore digital therapies for mental health issues and chronic diseases. Notably, global digital health funding fell 3% quarter on Quarter, from $3.5B in Q1'23 to $3.4B in Q2'23. Despite the fact that digital health funding has stayed relatively steady over the last three quarters, it fell to its lowest level since Q3'17 in Q2'23. There are countless examples of biopharma businesses that have lately garnered large VC capital.[2]
The engagement of emerging biopharma businesses (EBP) in deals has increased over the last five years, with emerging companies without a larger firm representing 57% of deals in 2022 which has been up from 53% five years ago. However a transition is seen as deals involving larger companies have increased in year 2022. EBP are responsible for two-third of the drug molecules. EBP of Chinese-based enterprises market share now exceeds that of the Europe. Companies headquartered in the United States account for approximately half of all EBP development. The R&D pipeline is continually expanding, with over 21,300 pharmaceuticals in the pipeline as of January 2023 and involves over 2,700 corporations and over 100 academic or research institutes worldwide. Oncology is the pipeline's focal point, accounting for 38% or 2,331 compounds and growing at a 10.5% CAGR over the last five years. The clinical development pipeline for non-rare cancers rose by 7% in 2022, but development for rare cancers has plateaued or fallen somewhat since 2020, suggesting that pharmaceutical companies are beginning to transition away from rare cancers. More than 900 next-generation biotherapeutics are now under development, with rising in...
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