Q2 2023 Biopharma Venture Funding – Therapeutics and Platforms

by Aug 21, 2023Analysis, Funding

The biopharmaceutical industry experienced a return of venture funding activity in the second quarter of 2023, driving therapeutic development and platform technology advancements. ElevateBio secured a noteworthy $401 million Series D financing to further develop their cell and gene therapy platforms. ReNAgade Therapeutics raised $300 million in a Series A funding round, focusing on expanding the potential market for RNA medicines through its comprehensive platform. Orbital Therapeutics successfully closed a $270 million Series A financing, furthering its mission to advance RNA-based medicines for various human diseases. Additionally, TORL BioTherapeutics secured $158 million in Series B financing, emphasizing its commitment to developing innovative antibody-based therapeutics for cancer treatment.

Venture Totals - Biopharma Therapeutics and Platforms

The start of 2023 showcased another decline following 2022, as 98 rounds raised $4.3 billion in the first quarter. Nevertheless, the second quarter presented a notable rebound, with 114 rounds raising $6.2 billion.

Biopharma Therapeutics & Platforms Vs Other Life Sciences

Venture Totals - Healthcare and Life Sciences by Subsector. Biopharma Therapeutics & Platforms Vs. Other Life Sciences

The biopharma therapeutics and platforms subsector funding trends show a gradual decline from Q1 2022 to Q1 2023. The first quarter of 2023 funding came in at at $3.7 billion. However, there was a slight increase in Q2 2023, with funding rising to $4.7 billion.

Moving on to the MedTech, devices, digital health therapeutics, and wearables subsector, it secured $3.0 billion in venture funding in Q1 2022. However, funding decreased in the subsequent quarters, reaching $1.6 billion in Q2 2022, $1.3 billion in Q3 2022, and $1.0 billion in Q4 2022. In Q1 2023, funding declined further to $1.2 billion. Nevertheless, there was a notable increase in Q2 2023, with funding rising to $2.0 billion.

The subsector’s diagnostics, sequencing, ‘omics, and research tools accumulated $4.6 billion in venture funding in Q1 2022. However, funding decreased in the subsequent quarters, reaching $3.6 billion in Q2 2022 and $1.5 billion in Q3 and Q4 2022. In Q1 2023, funding declined further to $1.3 billion. Nonetheless, there was a slight increase in Q2 2023, with funding rising to $1.6 billion.

Top Therapeutic Areas – H1 2023

Top Therapeutic Areas for Venture.

During the first half of 2023, venture funding activity in the therapeutic platforms and biopharma sector demonstrated promising investments across various disease categories. Notably, ventures focused on cancer led the way with an impressive 69 funding rounds, raising $3.5 billion. The ophthalmic sector followed closely, securing 12 rounds of funding amounting to $897 million, indicating a growing interest in vision and eye health advancements.

Furthermore, neurologic ventures garnered significant attention, with 14 funding rounds accumulating $658 million, highlighting the emphasis on research and treatments for neurological disorders. Autoimmune-related ventures secured 6 rounds of funding, raising $517 million, underscoring the importance of addressing diseases related to the immune system. Lastly, hematologic ventures obtained 4 rounds of funding, amassing $364 million, showcasing investment activity in blood disorders and related therapeutics. In summary, these top five disease categories attracted substantial investment during the first half of 2023, with 105 funding rounds raising $5,910 million. This significant investment reflects the ongoing commitment to advancing therapeutic platforms and biopharmaceuticals to tackle various health conditions.

Money Meets Medicine: Exploring Game-Changing Venture Funding Of The Quarter
    • In May 2023, ElevateBio successfully closed a $401 million Series D financing to advance their technology platforms for cell and gene therapies. Their focus includes Life Edit gene editing, iPSCs, and RNA to accelerate development. They plan to expand their manufacturing capacity and collaborate with Novo Nordisk for base editing therapies.
    • In May 2023, ReNAgade Therapeutics raised $300 million in a Series A funding round led by MPM BioImpact and F2 Ventures. Their comprehensive platform combines proprietary delivery technologies, including lipid nanoparticles, with various RNA tools to expand the market for RNA medicines. They also have partnerships with Orna Therapeutics and Merck.
    • In April 2023, Orbital Therapeutics closed a $270 million Series A financing round to advance RNA-based medicines for human diseases. They focus on next-generation vaccines, immunomodulation, and protein replacement. Their unique RNA platform combines established and emerging technologies to enhance the delivery of their therapeutics.
    • TORL BioTherapeutics LLC publicly launched and closed a $158 million Series B financing in April 2023. They focus on developing innovative antibody-based therapeutics for cancer treatment, including antibody-drug conjugates (ADCs) and monoclonal antibodies (mAbs). They have promising programs targeting CLDN 6 and CLDN 18.2 and a pipeline of preclinical ADCs and mAbs for unmet medical needs in oncology.
    • In June 2023, Worg Pharmaceuticals (Zhejiang) Co. Ltd. raised ¥1.1 billion (US$152 million) in a Series C funding round. The funds will be used to develop therapies for allergy and autoimmune diseases and expand their presence in the global market.

 

 

Mapping The Path Ahead

The surge of venture funding in the biopharmaceutical industry, particularly in Q2 2023, sets an optimistic tone for the future of therapeutic advancements and platform technologies. The substantial investments in ElevateBio, ReNAgade Therapeutics, Orbital Therapeutics, and TORL BioTherapeutics demonstrate the growing confidence and support in developing innovative treatments. As these companies expand their capabilities and pipeline, we can expect a wave of groundbreaking therapies that can potentially transform patient outcomes across various diseases.

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4,216

M&A

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Company Profiles

5,897

Other Deals

27,588

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