Pharmaceutical startups are at the cutting edge of developing novel platforms in the treatment of a range of therapeutic indications. CRISPR Therapeutics is one of many companies using pioneering gene-editing techniques to treat genetic conditions such as cystic fibrosis and Duchenne muscular dystrophy.
Figure 1 shows funding deals through venture financing where the deal involves pipeline drugs. While there has been a strong increase in venture funding deal values from 2013 to 2015, a 17% drop was seen from 2015 to 2016. Although there was an 8% increase in venture financing deal values from 2016 to 2017, this was relatively small in comparison to before 2015.
Figure 1: Venture financing deals for pipeline drugs, completed 2013 – 2017
Source: GlobalData, Pharma Intelligence Center, Deals Database [Accessed Dec, 2017]
However, if the venture financing is broken down further, a real growth trend can be seen for the venture financing that is provided for start-ups from 2013 to 2017. Investing in early-stage biotechs is providing an avenue for enhancing drug development through these novel platforms, which in return is helping bring drugs to market faster and more cheaply.