"Gold Rush For “Gene Therapy”
After the FDA lowered the entry barrier for mRNA vaccines (thanks to Covid), biotech companies saw an opportunity in gene therapy. Now, they’re doubling down on it.
• For biotech companies, the logic is simple. Faster FDA approvals mean a shorter time to market for a new drug or therapy. This dramatically reduces the time frame and returns on investment for biotech companies and their investors.
• Historically, clinical trials take years when the therapy generates no revenue. But with mRNA vaccines, some pharmaceutical companies went from testing to Emergency Use Authorization (EUA) and revenue generation in a few months.
• There were 2,900 clinical trials for gene therapies from 1989 to 2018. Last year, it was about 2,500, reports the Center for Biologics Evaluation and Research.
• As such, the biotech industry has recently seen record venture capital and private equity investment, accelerating growth for some companies.
• See five biotech companies on Barchart’s radar this month."
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