Oncology continues to dominate biopharma R&D, capital allocation and business development activity, consistently ranking as the leading therapeutic area by clinical trial volume and deal count within the Biotechgate database. Despite broader market volatility since 2021, oncology remains structurally resilient, underpinned by sustained scientific innovation, biomarker-driven development and strong commercial incentives.
Below we examine key trends across clinical trials, private equity investment, licensing activity and oncology vaccines.
Clinical Trials: Volatility or Normalization?
The number of oncology clinical trials has fluctuated since 2021 but remains within a relatively narrow range, suggesting normalization rather than structural contraction.
Between the trough (2022) and peak (2024), the number of trials registered varied by approximately 11%. The dip is likely due to a post-pandemic recalibration and portfolio prioritization across sponsors.
While 2025 shows a modest decline from 2024 levels, trial volume remains broadly aligned with the five-year average. Importantly, oncology continues to outpace other therapeutic areas in trial initiation, reinforcing its strategic priority across both biotech and big pharma pipelines.
Overall, the data indicates that oncology R&D remains structurally durable, even amid capital market tightening.
Is Investment Set to Decline Further?
Private equity financing in oncology companies experienced a pronounced capital expansion cycle between 2016 and 2021, culminating in a record USD 32bn in 2021. This period was characterized by abundant liquidity, low interest rates, crossover financings and elevated risk tolerance.
Investment in 2025 remains approximately 59% below the 2021 peak, reflecting a broader sector-wide reset. However, the contraction appears more consistent with capital discipline and valuation normalization than with a structural retreat from oncology. A sharp correction phase in 2022 has been followed by relative stabilization.
Licensing Deals: Greater Resilience
In contrast to private equity financing, oncology-related licensing activity has proven comparatively resilient.
Although deal volume has not returned to the 2021 peak, fluctuations have been materially less severe than those observed in financial markets. So while there was a severe correction witnessed on the financing side, BD-driven partnerships have been a source of stability. Big pharmas continue to rely on external innovation to replenish pipelines, particularly in oncology, which requires high scientific specialization, substantial R&D costs and a desire for differentiated assets in a competitive indication.
The rebound in 2024 suggests renewed appetite for partnership activity, especially for mid-stage assets with proof-of-concept data. While 2025 shows moderation, licensing remains a critical funding and risk-sharing mechanism for emerging oncology companies.
If capital markets remain selective, licensing and co-development agreements are likely to play an increasingly central role in financing early- and mid-stage oncology programs.
In Focus: Oncology Vaccines
Most Assets Remain in Early Development
Oncology vaccines represent a scientifically promising but historically challenging segment.
The high concentration of preclinical assets underscores continued innovation, such as in mRNA platforms, neoantigen-based approaches and personalized cancer vaccines. However, the attrition rate remains significant beyond Phase II.
With only seven oncology vaccines commercialized to date, clinical validation remains the key inflection point for the field. Nevertheless, technological advances in sequencing, antigen selection and mRNA delivery may improve future success rates.
Licensing Status: High Out-Licensing Potential
The high proportion of oncology vaccines available for licensing suggests substantial partnering opportunity, particularly for larger players seeking access to next-generation immunotherapy platforms.
Given the capital-intensive nature of late-stage oncology trials, partnership strategies will likely remain central to advancing these programs toward commercialization – as has been previously mentioned in the case of oncology overall.
What Next for Oncology?
When analyzing the comprehensive oncology data in Biotechgate, several themes emerge:
- R&D activity remains structurally robust, with trial volume fluctuating in a normalized band rather than trending downward.
- Financial capital has contracted sharply since 2021, but appears to be stabilizing under a more disciplined investing framework.
- Strategic licensing activity has proven more resilient, highlighting big pharma’s continued reliance on external innovation.
- Oncology vaccines remain early-stage heavy, with significant out-licensing potential ahead.
In a market defined by capital discipline and strategic partnerships, access to reliable data is a competitive advantage. Biotechgate equips life sciences professionals with the intelligence needed to navigate evolving oncology trends with confidence. Try a free trial today »