Abstract
Venture capital (VC) firms fund biopharmaceutical research and development (R&D) while incurring substantial financial risk. VC firms seek to invest in clinical areas with the greatest potential for financial return. Using a combination of data for clinical trials and VC investment deals between January 2014 and March 2024, we found that approximately 75% of VC investments were allocated to clinical trials studying smallmolecule drugs compared to biologics or gene therapies, without substantial changes over the study period. Most of VC firms’ investment in biopharmaceutical R&D was concentrated in phase 1 and phase 2 clinical trials. This trend has increased in recent years, with phase 1 trials accounting for nearly half of total deals and capital investments in 2023. VC investments were concentrated in several therapeutic areas, including cancer.
| Original language | English (US) |
|---|---|
| Article number | qxae124 |
| Journal | Health Affairs Scholar |
| Volume | 2 |
| Issue number | 10 |
| DOIs | |
| State | Published - Oct 1 2024 |
Keywords
- biopharmaceutical industry
- drug development
- investment in research and development
- prescription drug policy
ASJC Scopus subject areas
- Health Policy
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