The investment gold rush continues for regenerative medicines

The latest sector report from the Alliance for Regenerative Medicine (ARM), covering the first half of 2020, has a surprising finding: Despite the arrival of a global pandemic at the beginning of the year, new investment in cellular and genetic therapies (CGTs) and tissue engineering topped $10.7 billion globally—more than all of 2019. ARM expects the full-year data to exceed the previous record of $13.5 billion, set in 2018. The number of regenerative medicine companies is now 1,001. Notable financings during the half-year include the IPO of Legend Biotech ($487 million); the private financing at Sana Biotechnology ($700 million); and the upfront-payment partnership between uniQure and CSL Behring ($450 million).

ARM counts 1,078 clinical trials going on, with 97 in Phase III in the US—not much of a change from 2019, but notable in that managing clinical trials has been especially challenging during the pandemic. The organization also counts 11 new trials of cell therapies targeting complications of Covid-19. That effort has already caused some heartburn among healthcare observers: given the millions of potential patients, and given the relatively high cost of cell therapies, what will happen if the trials are resoundingly successful?