Neurology has cemented itself as one of the leading therapeutic areas within the biopharma space, with various innovations and changes constantly being introduced in an effort to produce therapies for its various indications. Find some of the key trends that are currently happening within the neurology landscape in this article, including R&D, investment and licensing.
Clinical Trials
Clinical trials in neurology saw a steady rise from 2015. Between 2015 and 2021, the number of trials per year increased by 55%, reaching a high of 1,482 registered studies. However, this came crashing down amid various industry challenges in 2022. 2023 and 2024 have shown steady signs of recovery, albeit still not reaching the heights of 2019 and 2020.
Financing
The story of neurology financing follows a relatively similar format to that of clinical trials. Funding shot up in 2019 and 2020, achieving a peak of USD 43bn in the latter year. This was buoyed by Innocare Pharma’s blockbuster USD 289m IPO on the Hong Kong stock exchange.
While funding contracted in 2022, growth levels have been stable since, climbing to USD 275 million in 2024. Much of the private equity financing rounds in neurology is being driven by venture capital firms.
Development Stage of Assets
The majority of neurology assets are currently in Preclinical phase, with the number of assets gradually dropping off as Phase 1, 2 and 3 studies progress and trials become more likely to fail.
According to Statista, neurology has one of the highest late-stage failure rates compared to other therapeutic areas, reaching figures of over 82% for FDA submission to approval.
Licensing Deals
Deal sizes in neurology have also witnessed a decline from 2020, almost halving in 2021. While there was a mild resurgence in 2023, 2024 saw another downturn. Though notable deals still took place, such as PTC Therapeutics collaborating with Novartis over their PTC518 therapy for Huntington’s disease. Including milestone payments, the deal has the potential to reach up to 2.9bn.
Another noteworthy deal involved AC Immune and Takeda over the former’s immunotherapy targeting Alzheimer’s disease. In this case, total payments could reach up to USD 2.1bn.
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