The biotech sector has experienced significant change since 2021. That year saw exceptional investor enthusiasm—particularly benefiting oncology and advanced therapeutic approaches like cell and gene therapy. The subsequent market correction in 2022–2023 pushed companies to reassess their priorities and spending. In 2025 renewed confidence emerges—especially for companies with proven science and clear patient benefits.
This market evolution has also transformed contract research organizations (CROs). The global CRO market was valued at $48.4 billion in 2020 and is projected to surpass $100 billion by 2028.1 However, today’s Sponsors seek more than basic outsourcing—they need comprehensive partners who can guide complex regulatory pathways, manage specialized laboratory work, and develop effective commercial strategies.
Three key trends are reshaping biotech’s future: the funding recovery, innovations in cell and gene therapy, and the emergence of CROs offering complete, integrated solutions.
In 2021, biotech startups worldwide secured over $70.9 billion in venture funding,2 while U.S. biotech IPOs cumulatively raised about $14 billion that same year.3 This capital surge drove a wave of new entrants and rapid growth. However, by late 2022, funding dropped by 35–40% compared to 2021’s highs,4 as inflation concerns, global uncertainties, and market performance led investors to become more selective. This shift forced early-stage companies to adapt their development plans.
Today, there remains substantial funding available—but it is exclusively for promising programs. Investors now direct resources to platforms and assets with clear advantages: validated targets, strong biomarker evidence, and well-defined regulatory strategies.
“Not every chemical entity should be funded…but enough capital for those with quality science is critical,” observes Chad Clark, President and COO of Precision Medicine Group, who has seen how companies with compelling data continue to secure funding. “There’s been more optimism this year than over the past couple of years, even though maybe the indices say differently. Our clients are feeling better.”
The current funding environment rewards thoughtful design in preclinical and early-phase work. Strong efficacy signals and biomarker correlations increase the likelihood of securing additional rounds. Companies are also planning earlier for potential acquisitions or partnerships, reflecting major pharmaceutical companies’ interest in reduced-risk assets.
Organizations that incorporate regulatory and commercial planning into their clinical approach often attract more investment. Today’s investors look beyond the science—they want clear paths to market, including payer considerations, real-world evidence, and pricing strategies.
Cell and gene therapies (CGTs) initially found success in specific blood cancers. Treatments like Kymriah and Yescarta showed how engineered T-cells could improve survival rates in certain leukemias and lymphomas. The challenge of applying these approaches to solid tumors remained—until recently.
Two key approvals targeting solid tumors in 2024 demonstrated CGTs’ broader potential in oncology. Industry experts anticipate more approvals in 2025, potentially fulfilling Scott Gottlieb’s prediction of 10–20 cell and gene therapy approvals annually by the mid-2020s. Notably, the CGT market overall is predicted to reach $74.24 billion by 2027,5 reflecting the sector’s rapid expansion.
“We saw two approvals for solid tumors, which is unprecedented,” notes Harpreet Singh, MD, CMO at Precision for Medicine and former FDA Director. “I think we’ll see more breakthroughs soon—especially in high-need areas.”
The complexities of CGTs drive sponsors toward CROs with scientific depth and comprehensive services, including:
Traditional CRO services focused on trial monitoring and data management. Modern biotech programs—especially in cell and gene therapy—require a unified approach combining:
While large CROs offer multiple services, next-generation providers stand out through seamless integration. They ensure insights flow naturally between stages—from early research through commercialization. Given the overall drug development success rate stands at around 7.9% and only 5.3% for oncology,6 integrated expertise can help sponsors navigate the high-risk environment more effectively.
Precision exemplifies this evolution, operating as an integrated entity that combines clinical excellence, laboratory science, regulatory and manufacturing expertise, along with a host of commercial and investor relations capabilities.
In 2023 and 2024 alone, Precision's fully integrated investor relations function helped biotech companies secure over $10 billion in funding, giving clients the financial traction needed to drive development, build visibility, and reach key milestones. Sponsors report that this comprehensive approach improves efficiency and builds confidence—knowing one partner can guide them from initial biomarkers through market launch.
“A biotech sponsor told me they felt our team cared about their timelines and patient population as much as they did,” shares Margaret Keegan, CEO of Precision Medicine Group, “that’s the difference an integrated and genuinely invested partner can make."
This shift reflects the industry’s move from transactional relationships to strategic partnerships, particularly in developing transformative treatments.
Focused funding, CGT advancement, and evolving partnerships. Success in 2025 will require balancing scientific progress with strategic planning—from generating robust clinical evidence to preparing for market access and maintaining investor confidence.
In an environment where multiple stakeholders influence outcomes, the ability to combine scientific excellence with regulatory insight and commercial strategy becomes essential. Whether launching a cell therapy trial or navigating market dynamics, organizations that embrace collaborative, patient-focused development will lead the transformation of innovative science into life-changing treatments.
2025 will be a defining year for those bringing breakthrough therapies to patients. But success won't come from science alone—it requires the right strategy, seamless execution, and expert guidance.
Precision’s integrated approach is helping more biotech leaders navigate these hurdles with confidence. As the industry moves forward, those who partner wisely will be the ones shaping the future.