Investor sentiment in the biotech sector is shifting toward late-stage development, as funding increasingly favors companies with proven clinical data and near-term milestones over early-stage, higher-risk assets.
According to Aditya Kotta, Head of Business Development (US/EU), Novotech, this trend reflects growing investor caution and a desire for lower-risk, higher-visibility opportunities following market volatility.
Biotechs with established clinical programs are now better positioned to attract capital and partnerships, while CROs supporting later-phase trials stand to benefit from rising demand. The focus on clinical validation and near-term results signals a maturing biotech investment landscape that prioritizes data-driven progress and tangible development outcomes.