Cell and gene therapy funding climbs to $2.2 billion in Q3 despite safety setbacks in CAR-T trials

Sail Biomedicine’s $925 million agreement with Johnson & Johnson helped lift venture capital money into the cell and gene therapy (CGT) space during the third quarter.

CGT attracted $2.2 billion across 51 deals, making it the second‑largest recipient of venture funding after small‑molecule drugs and ahead of biologics, which raised $1.5 billion.

This is only the second time since 2022 that CGT funding has surpassed biologics, reflecting a shift in investor focus.

The sector, however, is dealing with safety concerns after reports of deaths in autoimmune CAR‑T trials run by Novartis and Bristol Myers Squibb.

Despite the setbacks, investors continue to pour money into CGT, though the recent safety events may shape future funding decisions.