Lessons Learned in the Current Biotech Funding Environment

Cell and gene therapies (CGT) continue to advance in the pharmaceutical industry. Despite continued investment in R&D, the space still faces significant barriers. Primarily, the expensive nature of the treatments and complexity of manufacturing them.

Maher Masoud, CEO of MaxCyte, spoke with Pharmaceutical Executive about the CGT space and how the industry is working to move past these barriers. Advancements in platform technology are allowing companies to more efficiently partner with manufacturers to improve those processes, while new areas of research (such as non-viral cell engineering) are opening new possibilities.

Pharmaceutical Executive: What lessons have you learned in the current biotech funding environment?
Maher Masoud: Biotech funding can be a little bit lumpy at times. That's not new. We've seen this in the past. You have your tailwinds, and headwinds at times. What we have learned (and it's actually a good thing) is that the headwinds we've seen the past few years from the biotech industry have refocused the industry.

A lot of developers and companies are focusing on priorities. What makes you really great at what you do? Focus on what you're great at. And then for developers, what we're noticing is the funding environment, even though it has had a headwind, it's allowed them to focus on lead assets.

Rather than trying to take multiple programs into the clinic and have to continue to be on the cycle of trying to raise additional funds, focus on the science. See what your lead asset is and what you believe you can get through the clinic and to commercialization. In essence, they've sharpened their pencils in this environment, and we're seeing that.

What we're also seeing (and I think it's a good thing that we're seeing this) is that the entrepreneurial spirit is coming back. I don't think you need to have as much funding to develop products all the way through the clinic. We've been at conferences and we've heard this from others as well.

Now's the time that we're seeing companies really start to say themselves, do I need to raise as much as I raised in the past? It'll take a product to the clinic. Maybe not, especially if you're focused, especially right now and have the ability to really have come together across industry and share ideas.

We've seen it where you don't need as many funds, you don't need as much cash on hand to take a product all the way through the clinic. I think it's a positive the headwinds we had.