2025 reflects a clear shift toward fewer but larger, high conviction investments in Gene Therapy and Vectors. Capital was concentrated around scalable platforms, delivery technologies, and clinical-stage assets, supported by larger partnerships, fully cash-backed M&A, and a recovery in venture funding.
In R&D Partnerships, deal volume remained at 17, but total value more than doubled from $5.7 billion to $12.5 billion. Upfront cash and equity increased from $100 million to $500 million, with higher average and median payments. Key transactions included Orna with Vertex, offering up to $635 million plus $365 million per product across up to 10 products; Arbor with Chiesi, at up to $2 billion; and Sangamo with Eli Lilly, at up to $1.4 billion, a focus on delivery platforms and multi-target expansion.
M&A activity stayed at four deals, but total value rose from $1.2 billion to $2.1 billion. Cash-only structures increased to $2.1 billion from near zero, while average deal size reached $1.1 billion. Notable transactions include AbbVie acquiring Capstan for $2.1 billion, Eli Lilly acquiring Adverum for up to $262 million, and SL Bio’s $5.5 billion SPAC merger, the market favoring fewer, larger, and certain transactions. Venture Funding accelerated significantly, with the number of rounds increasing from 19 to 28 and total capital rising from $800 million to $2.5 billion. Average round size doubled to $92 million. Key raises include Kriya Therapeutics with $320 million series D and $313 million financing, and Soufflé Therapeutics with a $200 million series A.
Gene Therapy and Vectors R&D Partnerships
In 2025, Gene Therapy and Vectors R&D partnerships held steady at 17 deals, matching 2024 levels, but total deal value more than doubled from $5.7 billion to $12.5 billion. Upfront cash and equity increased significantly from $100 million to $500 million, with the average upfront rising from $29 million to $68 million and the median from $20 million to $75 million. While deal volume remained unchanged, the financial commitment of partnerships strengthened in 2025. Across both years, the sector recorded 34 deals totaling $18.2 billion.
Prominent Gene Therapy and Vectors R&D Partnerships in 2025
Orna development and commercialization deal with Vertex – January 2025
Orna, through its wholly owned subsidiary ReNAgade, granted Vertex rights to develop and commercialize multiple undisclosed gene editing therapies targeting Sickle cell disease (SCD) and Transfusion-dependent beta-thalassemia (TDT). The 3-year agreement leverages Orna’s lipid nanoparticle (LNP) delivery platform to enhance gene therapy targeting of hematopoietic stem cells (HSCs), with an option for Vertex to extend the collaboration and add up to 10 additional targets. Financially, Orna will receive $65 million upfront, including a convertible note investment, and is eligible for up to $635 million in preclinical, development, regulatory, and commercial milestones for SCD/TDT programs. Upon option exercise, the deal includes up to $365 million in additional milestones and option fees per product across up to 10 products, alongside tiered royalties.
Arbor development and commercialization deal with Chiesi – October 2025
Arbor granted Chiesi exclusive global rights to develop and commercialize ABO-101, a liver-targeted gene editing therapy for Primary Hyperoxaluria Type 1 (PH1), a rare hepatic disorder. Currently in Phase I/II, ABO-101 utilizes CRISPR Cas12i2 technology to enable permanent reduction of oxalate levels. The agreement also provides Chiesi with the option to apply Arbor’s knockout (KO) and reverse transcriptase (RT) editing platforms to additional rare liver disease targets. Arbor is eligible to receive up to $115 million in upfront and near-term payments, with total potential milestones reaching up to $2 billion, alongside low double-digit tiered royalties.
Sangamo development and commercialization deal with Eli Lilly – April 2025
Sangamo Therapeutics granted Eli Lilly exclusive global rights to develop and commercialize gene therapies using its STAC-BBB adeno-associated virus (AAV) capsid, initially for one CNS target with the option to expand to up to four additional targets. Sangamo will lead technology transfer for the STAC-BBB platform, while Lilly assumes full responsibility for development, regulatory, and commercialization activities. Sangamo will receive $18 million upfront and is eligible for up to $1.4 billion in licensed target fees and milestones across five potential neurology targets, in addition to royalties.
Gene Therapy and Vectors M&A
In 2025, Gene Therapy and Vectors M&A activity remained flat at 4 deals, in line with 2024, but transaction value increased sharply. Total M&A value rose from $1.2 billion to $2.1 billion, while cash value with no contingents climbed from almost zero to $2.1 billion. Average upfront cash and equity surged from $19 million to $1.1 billion, with the median also reaching $1.1 billion. Across both years, the sector recorded 8 deals totaling $3.3 billion.
Prominent Gene Therapy and Vectors M&A in 2025
SL Bio reverse merging with Horizon Space Acquisition II Corp – May 2025
SL Bio agreed to a reverse merger with Horizon Space Acquisition II Corp. to go public as SL Science Holding on NASDAQ, targeting completion in Q4 2025, subject to regulatory approvals, shareholder consent, and listing clearance. The company focuses on cellular and gene therapies for oncology and regenerative medicine. The transaction implies an equity value of $5.6 billion at $10 per share. As of January 2026, an extraordinary general meeting was set for February 2026, and the merger remains pending with a shareholder vote scheduled for later in February 2026, with no changes to the deal.
AbbVie acquired Capstan – June 2025
AbbVie acquired Capstan, which develops in vivo CAR-T and RNA delivery therapies leveraging a targeted lipid nanoparticle (tLNP) platform. Key assets include Phase I CPTX-2309, an in vivo tLNP anti-CD19 CAR-T therapy for B-cell–mediated autoimmune diseases, and discovery-stage CPTX-2506, a BCMA-targeting CAR-T therapy for cancer and autoimmune indications, alongside additional programs in immunology, oncology, and fibrosis. The transaction includes up to $2.1 billion in upfront cash, subject to customary adjustments. The acquisition was completed on August 19, 2025.
Eli Lilly acquired Adverum Biotechnologies – October 2025
Eli Lilly acquired Adverum Biotechnologies, whose lead asset Ixo-vec is a Phase III AAV.7m8 gene therapy for wet age-related macular degeneration (AMD). The pipeline also includes G-S030 and RTx-015 (Phase I, Retinitis Pigmentosa), LX-2006 GTx (Phase I, Friedreich Ataxia), ADVM-062 and ADVM-082 (preclinical, Blue Cone Monochromacy and Achromatopsia), and LSV1.CFI GTx (discovery stage). The deal offers $3.56 per share in cash, valuing the transaction at $75 million for 20.9 million shares outstanding, plus a non-transferable CVR of up to $8.91 per share, bringing total potential value to $262 million. CVR payments include up to $1.78 per CVR upon US regulatory approval within seven years and up to $7.13 per CVR upon first global sales of Ixo-vec and exceeding $1 billion in sales within 10 years. The acquisition was completed on December 9, 2025.
Â
Gene Therapy and Vectors Venture Funding
In 2025, Gene Therapy and Vectors venture funding accelerated, with rounds increasing from 19 to 28 and total capital raised more than tripling from $800 million to $2.5 billion. The average round size doubled from $45 million to $92 million, indicating higher deal activity and larger capital commitments. In contrast, 2024 reflected subdued conditions, with fewer rounds and smaller check sizes. Across both years, the sector raised $3.2 billion over 47 rounds.
Prominent Gene Therapy and Vectors Venture Funding in 2025
Kriya Therapeutics – Series D – $320M – September 2025
Kriya Therapeutics, a clinical-stage biopharmaceutical company based in Research Triangle Park, closed a $320 million series D. The round was oversubscribed and priced at a step up from the prior financing, led by Patient Square Capital and Premji Invest, with participation from Peter Thiel, Narya Capital, The T1D Fund, and existing investors. Proceeds will fund clinical development across 5 lead programs in Geographic Atrophy, Thyroid Eye Disease, Type 1 Diabetes, MASH, and Trigeminal Neuralgia, as well as continued investment in Kriya’s in-house R&D and manufacturing capabilities. Founded in 2019, Kriya has now raised more than $900 million to date.
Kriya Therapeutics – Series Unspecified – $313M – August 2025
In August 2025, just weeks ahead of its series D, Kriya Therapeutics disclosed a $313 million equity raise via an SEC filing in August 2025. The round did not identify participating investors, and no details were provided on proceeds. At the time, Kriya’s pipeline comprised nine programs across ophthalmology, metabolic health, and neurology, with two assets in clinical development. Its lead candidate, KRIYA 825, is an AAV-based gene therapy for Geographic Atrophy targeting the complement cascade and has completed early IND-enabling studies. Additional programs included KRIYA 748 for Trigeminal Neuralgia, an epilepsy asset acquired through Redpin Therapeutics, and a MASH program from Tramontane Therapeutics, with deal values undisclosed. This financing builds on prior raises of $100 million (series B, 2021), $270 million (series C, 2022), and a $150 million extension in July 2023. At $313 million, the round ranked among the top private biotech financings.
Souffle Therapeutics – Series A – $200M – October 2025
Souffle Therapeutics, based in Watertown, Massachusetts, emerged from stealth in October 2025 with a $200 million series A. The company is developing targeted, cell-specific siRNA therapies using an antibody-conjugated delivery platform designed to reach cells beyond the liver, addressing a key limitation in genetic medicine. The round was led by Bessemer Venture Partners, with participation from Arch Venture Partners, Vida Ventures, Polaris Partners, AbbVie Ventures, Amgen, Breyer Capital, Janus Henderson Investors, and others, totaling 13. Souffle also launched with established Big Pharma partnerships, including AbbVie, Amgen, Bayer, and Novo Nordisk, bringing combined fundraising and partnership value to more than $3.5 billion, with total equity raised at approximately $241 million.
Â
Also check out Gene Therapy & Vectors R&D Partnerships and Venture Funding – Q3 2025 Review
