Ultra Market Research | U.S. Pharma and Biotech Funding Market
U.S. Pharma and Biotech Funding Market
Report ID : 1169
Category : Biotechnology,United-States(US)
No Of Pages : 145
Published on: June 2025
Status: Published
Format :
Key Question Answer
Global Market Outlook
In-depth analysis of global and regional trends
Analyze and identify the major players in the market, their market share, key developments, etc.
To understand the capability of the major players based on products offered, financials, and strategies.
Identify disrupting products, companies, and trends.
To identify opportunities in the market.
Analyze the regional penetration of players, products, and services in the market.
Comparison of major players financial performance.
Evaluate strategies adopted by major players.
Recommendations
Introduction
The U.S. Pharma and Biotech Funding Market consists of capital infusions—venture capital, public offerings, M&A, partnerships, and grants—to pharmaceutical and biotech firms in the United States. In service from early research to late development, it powers innovation in genes like gene therapy, biologics, AI‑powered drug discovery, and personalized medicine. U.S. biotech alone was worth ≈ USD 552 billion in 2023 and is expected to be USD 1.79 trillion by 2033 (CAGR ~12.5 %) (larka.com, biospace.com). In the meantime, the wider U.S. pharma market was approximately USD 634 billion in 2024 and projected to reach USD 884 billion by 2030 (CAGR ~5.7 %). Amid headwinds—increased interest rates, NIH/FDA budget pressures and volatility—the market is still strong: VC financing rebounded (~USD 6.3 b in Q1 2025), biotech M&A reached record valuations (~USD 109 b in 2024). The current situation reflects guarded optimism: capital deployment is moving toward strategic partnerships, small‑to‑mid transactions, and AI‑driven drug discovery.
Segmentation
By Funding Source
Venture Capital
Seed & Series A
Biologics (antibodies, proteins)
Small molecules
Others (mRNA, oligonucleotides)
Late-stage (Series B‑C+)
Cell/gene therapy
AI-biotech platforms
Others
Follow-on & extension rounds
Public Markets
IPOs
Biotech startups
Specialty pharma
Others
Follow-on equity offerings
Mergers & Acquisitions
Small-to-medium pharma/biotech buys
Therapeutics
Platform tech
Mega-deals (>$1 b)
Licensing & royalty monetization
Strategic Partnerships & Alliances
Pharma–startup collaborations
R&D co‑development
Licensing agreements
Biotech–biotech alliances
Joint clinical trials
Tech-sharing deals
International licensing
Public & Grant Funding
NIH grants
Investigator-initiated projects
Infrastructure
Foundation funding
State & local biotech initiatives
Market Players
Johnson & Johnson (USA)
Pfizer (USA)
Merck & Co. (USA)
Abbott Laboratories (USA)
Amgen (USA)
Gilead Sciences (USA)
Bristol‑Myers Squibb (USA)
Biogen (USA)
Moderna (USA)
Regeneron (USA)
Novartis (Switzerland)
Sanofi (France)
Vertex Pharmaceuticals (USA)
CRISPR Therapeutics (Switzerland‑USA)
Illumina (USA)
Drivers
The U.S. Pharma and Biotech Funding Market is driven by a number of primary drivers. Firstly, unsatisfied medical needs—oncology, rare disease, metabolic disorders—create demand for novel therapies, drawing in capital. Secondly, advances in gene editing, messenger RNA, and AI-empowered drug discovery have reshaped development efficiency, attracting investors. Third, Big Pharma's "firepower" (~USD 1 trillion in cash reserves) and strategic desire to restock mature pipelines have spurred more M&A and partnerships (fiercebiotech.com, reddit.com, pharmexec.com, larka.com, wsj.com, grandviewresearch.com, globenewswire.com, biospace.com). Fourth, strong public support—NIH grants and federal programs—keep early-stage academic and startup R&D going. Fifth, better exit routes (IPOs, SPACs, follow‑ons) have restored investor enthusiasm following a bumpy 2022–2023. Lastly, globalization of capital—trans-border collaborations with parties in Europe and China—bring new sources of capital and risk diversification. Combined, these drivers strengthen financial support along all phases of therapy development.
Restraints
U.S. funding growth is subject to some challenges. Increasing interest rates and volatility in capital markets have compressed valuations and curtailed VC activity for early-stage biotech ventures. Government policy changes—NIH/FDA budget cuts, advisory board disruptions—have injected regulatory and grantmaking uncertainties (ft.com). Clinical and scientific failures—like safety issues in gene therapy and trial disappointments—have created less investor demand and share-price blows (barrons.com). Patent cliffs and generic threats amplify pressure on pharma revenue streams, stifling internal funding and devaluing pipelines. Also, protracted trial cycles and high development expenses deter investments in new modalities involving extended validation durations. Geopolitical tensions—e.g. US-China trade tension—also make international licensing agreements more difficult, limiting access to some innovative resources. These interconnected financial, regulatory, and scientific barriers hold back quick market growth.
Opportunities
In spite of challenges, compelling opportunities persist. AI and generative deep learning are revolutionizing early-stage discovery and clinical trial design, reining in time and expense. Ageing population and increasing incidence of chronic/rare diseases drive demand for personalized therapies, underpinning funding into specialty biopharma. Recent spike in biotech M&A—high-value deals such as Sanofi‑Blueprint and BMS‑Karuna—provide liquidity options for smaller biotechs (ft.com). Gene and cell therapy continue to innovate—e.g. CRISPR approvals, CRISPR and ex-vivo editing—new windows opening for investors. Outsourcing of R&D and services (CRO/CDMO market ~USD 10 b now increasing) offers capital-efficient growth pathways. Strategic collaborations between Big Pharma and biotech emerging companies are getting deeper—fostered by uncertainty—offering early funding and commercial support. The international collaboration (China, EU) to immunotherapy licensing also increases value of deals. Lastly, federal incentives to onshore manufacturing and API innovation support local investment pipelines. These dynamics coalesce to form multiple funding opportunities.
Trend
The U.S. Pharma and Biotech Funding Market is seeing a dominant new trend towards the incorporation of AI-based drug discovery platforms. Generative AI is being increasingly utilized not just in target identification but also in structural biology, predictive toxicity screening, and adaptive clinical designs. Strategic partnerships between major pharma companies and early‑stage biotech/AI ventures are on the rise, with co‑development agreements (e.g., Pfizer‑Flagship, Pfizer‑NVIDIA/AI partners) growing in frequency (en.wikipedia.org). A second trend is a shift from mega‑deals to mid‑size deals and licensing aimed at high-dollar assets, motivated by cost management among Big Pharma. Also, bispecifics, antibody–drug conjugates, peptides, and ATMPs are gaining more share of the funding as investors rediscover modalities with high clinical traction (larka.com). Biotech IPOs have picked up moderately, but still far below earlier highs—indicating a readjusted public financing environment. Last, geographic diversification—cross-border transactions with China and Europe—is increasing, broadening capital sources amidst domestic market turbulence.
Approved Products Pipeline / Reg / Pre‑reg
Sebetralstat (KalVista – acute HAE)
Zolgensma (Novartis – SMA)
BEIZRAY (Zydus – various cancers)
Stelara biosimilar (Biocon)
Keytruda, Opdivo bispecific updates
CRISPR Casgevy (CRISPR Therapeutics)
Key Target Audience
Pharmaceutical & biotech execs
VC & PE investors
Institutional asset managers
CRO/CDMO firms
Policy makers & government agencies
R&D heads & innovation strategists
Health economists & consultants
Licensing and BD professionals
In 2023, biotech alone was ~$552 b (projected to $1.8 t by 2033), while pharma was ~$634 b in 2024, growing ~5–6% annually
Venture capital, public equity (IPOs/follow‑ons), M&A, licensing deals, and grants (NIH/foundations).
High unmet need, AI innovations, aging population, pharma’s cash reserves, and renewed biotech M&A .
Rising interest rates, tighter VC, regulatory uncertainty (NIH/FDA cuts), trial failures, patent cliffs and global trade issues
AI-driven platforms, biologics & ATMPs, mid-tier M&A deals, CRO/CDMO outsourcing, and international alliances
1. Introduction
1.1 Report Description 1.2 Research Methodology 1.2.1 Data Mining 1.2.2 Market Modeling and Forecasting 1.2.3 Data Validation 1.2.4 Industry Analysis
2. Market Dashboard
2.1 Funding Round Trends (VC, IPO, M&A) 2.2 Year-on-Year Investment Growth 2.3 Modality-wise Investment Distribution 2.4 Top Therapeutic Focus Areas Funded
3. Market Overview
3.1 Market Definition and Scope 3.2 Market Segmentation 3.2.1 By Funding Source - Venture Capital • Seed & Series A • Series B & C • Follow-On Rounds - Public Equity Markets • IPOs • Follow-on Offerings - Mergers and Acquisitions • Small/Mid-size M&A • Mega M&A - Strategic Partnerships • Pharma–Biotech Deals • Biotech–Biotech Collaborations • International Licensing - Public and Grant Funding • NIH • State Initiatives • Foundations 3.3 Market Dynamics 3.3.1 Drivers 3.3.2 Restraints 3.3.3 Opportunities 3.3.4 Challenges
4. U.S. Pharma and Biotech Funding Market by Therapeutic Areas
6. U.S. Pharma and Biotech Funding Market by Funding Stage
6.1 Introduction 6.2 Market Size and Forecast by Funding Stage (2024–2030) 6.2.1 Pre-Seed & Seed Stage 6.2.2 Series A & B 6.2.3 Late-Stage VC (Series C+) 6.2.4 Public Market Access (IPO, SPAC) 6.2.5 M&A & Exit Strategies
7. U.S. Pharma and Biotech Funding Market by Investor Type
7.1 Introduction 7.2 Market Size and Forecast by Investor Type (2024–2030) 7.2.1 Venture Capital Firms 7.2.2 Private Equity Firms 7.2.3 Institutional Investors 7.2.4 Corporate Venture Arms 7.2.5 Government and Grants
8. Competitive Landscape
8.1 Company Profiles 8.1.1 Amgen Inc. (United States) 8.1.2 Novartis AG (Switzerland) 8.1.3 Pfizer Inc. (United States) 8.1.4 Gilead Sciences (United States) 8.1.5 Kite Pharma (United States) 8.1.6 Takeda Pharmaceutical Company (Japan) 8.1.7 Bristol-Myers Squibb (United States) 8.1.8 Jazz Pharmaceuticals (Ireland) 8.1.9 AbbVie Inc. (United States) 8.1.10 Sanofi (France) 8.1.11 Autolus Therapeutics (United Kingdom) 8.1.12 Cellectis (France) 8.1.13 Allogene Therapeutics (United States) 8.1.14 Celgene Corporation (United States) 8.1.15 Eli Lilly and Company (United States) • Business Overview • Product Portfolio • Strategic Developments • Financial Overview
9. Conclusion and Recommendations
10. Appendix
10.1 List of Tables
Table: U.S. Pharma and Biotech Market Size by Therapeutic Area (2024–2030)
Table: Market Size by Treatment Modality (2024–2030)
Table: Market Size by Funding Stage (2024–2030)
Table: Market Size by Investor Type (2024–2030)
Table: Market Size by Funding Source Breakdown
Table: Financial Overview of Key Market Players
10.2 List of Figures
Figure: Market Size and Growth Forecast (2024–2030)
Figure: Funding by Source (% Share and USD Billion)
Figure: Investment by Therapeutic Area (USD Billion)
Figure: Share of Public vs Private Capital Flows (2024–2030)
Figure: Venture Capital Deals by Stage (2024–2030)
Figure: M&A Activity in Biotech (2024–2030)
Figure: Public Market Recovery Trends (IPOs, SPACs)
Figure: Regional Share of U.S. Biotech Funding
Research Methodology
The process of market research at Ultra Market Research is an iterative in application and usually follows following path. Information from secondary used to build data models, then results from data models are validated from primary participants. Then cycle repeats where, according to inputs from primary participants, additional secondary research is done, and new Information is again incorporated into data model. The process continues till desired level of Information is not generated
To calculate the market size, the report considers the revenue generated from the sales of Ultra Market Research providers. The revenue generated from the sales of Ultra Market Research has been calculated through primary and secondary research. The report also presents the key players operating in the Ultra Market Research market across the globe identified through secondary research and a corresponding detailed analysis of the top vendors in the market. The market size calculation also includes distribution channel segmentation determined using secondary sources and verified through primary sources.
Secondary Research
The secondary research source that are typically referred to include, but are not limited to:
Company websites, annual reports, financial reports, broker reports, investor presentations and SEC filings
Internal and external proprietary databases, relevant patent and regulatory databases
National government documents, statistical databases and market reports
News articles, press releases and web-casts specific to the companies operating in the market
The source for secondary research includes but is not limited to: Factiva, Hoovers and Statista
Inner Circle Represents – Stage of Research Process
Middle Circle Represents – Source of Information
Outer Circle Represents – Information Derived from that source
Primary Research We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate data and analysis. A typical research interview fulfills the following functions:
It provides first-hand Information on the market size, market trends, growth trends, competitive landscape, future outlook etc.
Helps in validating and strengthening the secondary research findings
Further develops the analysis team’s expertise and market understanding
Primary research involves E-mail interactions, telephonic interviews as well as face-to-face interviews for each market, category, segment and sub-segment across geographies
The participants who typically take part in such a process include, but are not limited to:
Industry participants: CEOs, VPs, marketing/ distribution channel managers, market intelligence managers and national sales managers
Purchasing managers, technical personnel, distributors and resellers
Outside experts: Investment bankers, valuation experts, research analysts specializing in specific markets
Key opinion leaders specializing in different areas corresponding to different industry distribution channels
Models Where no hard data is available, we use modeling and estimates in order to produce comprehensive data sets. A rigorous methodology is adopted in which the available hard data is cross referenced with the following data distribution channels to produce estimates:
Demographic data: Population split by segment
Macro-economic indicators: GDP, etc.
Industry indicators: Expenditure, distribution channel stage & infrastructure, sector growth and facilities.
Data is then cross checked by the expert panel.
2..1 Company Share Analysis Model
Company share analysis is used to derive the size of Global market. As well as study of revenues of companies for last three to five years also provide the base for forecasting the market size and its growth rate. This model is built in following steps: 2..2 Revenue Based Modeling
Revenue based models can be built in two ways – Top-Down or Bottom-Up irrespective of industry. Market size estimated from company share analysis acts as a validation point for bottom-up approach where as it acts as starting point for top-down approach.
2.1 Research Limitations Inflation is not a part of pricing in this report. Prices of U.S. Pharma and Biotech Funding Marketand its derivatives vary in each region and hence similar revenue ratio does not follow for each individual region. The same price for each distribution channel has been taken into account while estimating and forecasting market revenue Globally. Regional average price has been considered while breaking down this market by application in each region. This report provides market size of CANOMAD syndrome Market for the past year and forecasts for the next six years. U.S. Pharma and Biotech Funding Marketsize is given in terms of revenue. Market revenue is defined in USD Million. Market numbers are given on the basis of different U.S. Pharma and Biotech Funding Marketcategories. Market size and forecasts for each major application is provided in the context of Global market. The numbers provided in this report are derived on the basis of demand for U.S. Pharma and Biotech Funding Marketfrom different application industries in different regions.
