Posted on Jan 04, 2021, 7 p.m.
As the world continues to grapple with the COVID-19 pandemic, the importance of regenerative medicine, and its many facets ranging from vaccine development to novel therapeutics, is being highlighted. While the industry has been receiving increased attention from investment firms in recent years, the recent boost in financial support from governments across the globe as part of the novel coronavirus response is expected to further propel the market. Businesses based on regenerative medicine are experiencing a flood of cash and record valuations – all factors predicted to fuel the market surge in coming years.
The Regenerative Medicine Industry
As an industry, the regenerative medicine arena of biomedical sciences involves medical treatments centered around repair of damaged cells, tissues, and organs via cellular therapies, tissue engineering, medical devices, as well as artificial organs. Treatments also include stem cell therapies, tissue grafts, and organ transplants to improve patient’s health.
Today, the market encompasses many facets of regenerative medicine including cellular and acellular regenerative medicine which are increasingly being used in clinical procedures, such as cellular, immunomodulation, and tissue engineering therapies. With the potential to effectively treat Alzheimer’s, Parkinson’s, and other chronic diseases, the specialty has a bright outlook; the future of stem cell research is promising as emerging data continues to prove its efficacy and safety.
Additionally, forthcoming government funding of this type of research is bound to increase as in November 2020, voters in California passed Proposition 14, a referendum approving $5.5 billion for stem cell research while other governments around the nation and globe are working on similar efforts.
Based on the Regenerative Medicine Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025 report by Business Wire, one of the strongest factors driving market trends is a growing aging population associated with a heightened prevalence of chronic diseases and disorders. This demographic is prone to musculoskeletal, neurological, as well as cardiological disorders and could greatly benefit from regenerative therapeutics.
In addition, the widespread adoption of organ transplantation will serve as another beneficial factor as the procedure minimizes the risk of organ rejection post-transplant and expedites recovery. Burgeoning market applications are on the horizon as well; technological advancements in cellular therapies, the development of 3-D bioprinting, and the adoption of artificial intelligence in the production of regenerative treatments are all expected to induce further growth. These will be supported by upcoming extensive research and development activity in the industry, improvements in healthcare infrastructure, and discoveries in medical sciences.
Investments and New Companies
Over the course of the past 6 years, the global regenerative medicine market grew at a compound annual growth rate of nearly 16%. During the first half of 2019, gene and cell therapy companies alongside other regenerative medicine companies raised nearly $5 billion in funding. Meanwhile, companies in Europe and Israel experienced accelerated fundraising with $1.3 billion amassed in the first half of 2019 for a 17% increase from the prior year.
As part of Project Warp Speed, billions of dollars have been invested in the United States and across the world, a combination of public and private investment which offers a huge boost to regenerative medicine companies.
Per the Alliance for Regenerative Medicine, there are currently nearly 1,000 companies focused on evolving this area of research worldwide. Emerging companies in the space explore developments in gene therapy, cell therapy, and tissue engineering therapeutics with over 50% of them focused on cell and gene therapies. A large majority of these companies are located in North America with a quarter in Europe and Israel and 20% based in Asia.
Potential factors impeding market growth are ethical and legal considerations associated with some controversy surrounding stem cell research and therapeutics among ethicists. As the United States and its federal government transitions to a new administration, new mandates, increased research and development funding is likely to affect the release of new products and medical discoveries. Furthermore, acceleration within the industry and market growth are likely to be spurred by artificial intelligence advancements which will allow for more efficient research efforts and improve data analysis.
Article courtesy of The American Academy of Anti-Aging Medicine (A4M)
Written by: Zuzanna Walter
Materials provided by:
Content may be edited for style and length.
This article is not intended to provide medical diagnosis, advice, treatment, or endorsement