Cell and Gene Therapy Draws $2.2B in Funding
Engineered cell treatments rank second for venture capital in Q3 2026, even as Novartis pauses a CAR T trial after three deaths.
Updated on Nov. 2, 2026 in Biotech
Cell and gene therapy drew $2.2 billion in venture capital across 51 deals in the third quarter of 2026, ranking second behind small molecules at $3.2 billion, according to figures cited in the source. The period also saw safety setbacks, with Novartis pausing trials of a CAR T therapy after three deaths in late August.
Why it matters
The flow of capital toward cell and gene therapies signals sustained investor interest in engineered cell treatments, even as safety signals and fundraising pressure reshape which programs advance. Caribou Biosciences cited a challenging fundraising environment for allogeneic cell therapy as it suspended R&D activities.
Venture capital figures from Q3 2026 show cell and gene therapy at $2.2 billion across 51 deals, compared with $3.2 billion for small molecules and $1.5 billion for biologics. The source does not report the underlying clinical measurements behind the trial pauses, and the cause of the deaths remains unstated.
The players
Novartis
Swiss pharmaceutical company with a cell therapy pipeline, which paused clinical trials of its CAR T rapcabtagene autoleucel after three deaths.
Johnson & Johnson
Global pharmaceutical company whose JJDC venture arm and deal with Sail Biomedicine position it in cell and gene therapy, with J&J expecting Sail assets to reach the clinic this year.
Bristol Myers Squibb
Large biopharmaceutical company developing CAR T zolacabtagene autoleucel, which reported a death in a multiple sclerosis trial.
Caribou Biosciences
Biotech company focused on allogeneic cell therapy that suspended R&D activities, citing a difficult fundraising environment.
The details
Cell and gene therapies often use engineered immune cells, such as CAR T cells, which are a patient's own T cells modified in the lab to recognize and attack cancer. Novartis paused clinical trials of CAR T rapcabtagene autoleucel after three deaths in late August, and Bristol Myers Squibb reported a death in a multiple sclerosis trial of CAR T zolacabtagene autoleucel. Johnson & Johnson's deal with Sail Biomedicine, closed in August, gives J&J an exclusive option to purchase the company for $2.58 billion, with up to $925 million initially and $785 million in upfront payments including a $465 million equity investment.
Timeline
August 2026: Novartis paused CAR T trials after three deaths, and the Johnson & Johnson-Sail Biomedicine deal closed.
Third quarter 2026: Cell and gene therapy ranked second in venture capital fundraising.
September 2026: Johnson & Johnson presented its plans at the Morgan Stanley healthcare conference.
October 2026: Armed Cell Therapeutics announced its deal with Lakefront Biotherapeutics.
The Tech Race
Cell and gene therapy's $2.2 billion in Q3 2026 venture funding trailed only small molecules' $3.2 billion, positioning engineered-cell approaches as a major competitive field. Johnson & Johnson's Sail Biomedicine deal and Novartis's paused CAR T program show competing companies advancing and retrenching within the same therapeutic category.
Patients with conditions being targeted by these programs will see trial availability shaped by which companies continue or pause development. The source does not state availability dates or pricing for any of the therapies mentioned.
The takeaway
Watch whether Novartis resumes its paused CAR T trials and whether J&J's Sail assets enter the clinic this year, since both will indicate whether the capital inflows are translating into durable clinical progress.
What happens next
Johnson & Johnson expects assets from its Sail Biomedicine collaboration to enter the clinic this year.
Further reading
For broader context on how engineered cell treatments are developed, explore our Biotech coverage.
Source note: This article includes information reported by Pharma.
