A New Turning Point in Biotech Innovation: Rapid Growth in Precision Medicine and Cell Therapy Markets by 2026
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The Advent of the Precision Medicine Era and Changes in Market Dynamics
As of early 2026, the global biotechnology industry is undergoing fundamental changes through the integration of artificial intelligence and genomics. According to the latest report by McKinsey & Company, the global precision medicine market is expected to reach $352 billion by 2026, reflecting a 15.8% growth rate from the previous year. Notably, the Asia-Pacific region has emerged as the second-largest market, accounting for 32% of the total market, following North America at 41%.
South Korea’s biotech ecosystem is at the forefront of these global trends. Samsung Biologics, headquartered in Songdo, Incheon, recorded a 28.3% increase in sales in the fourth quarter of 2025 compared to the same period the previous year, reaching 1.24 trillion won, thereby solidifying its position in the global biopharmaceutical contract development and manufacturing organization (CDMO) market. Simultaneously, Celltrion, based in Yeonsu-gu, Incheon, achieved annual sales of 3.12 trillion won in the biosimilar market, continuously expanding its market share in Europe and the United States.
The rapid advancement of AI-driven drug development platforms underpins this growth. Companies like Insilico Medicine in California and Exscientia in London have developed AI drug development platforms that reduce the traditional 10-15 year drug development period to 5-7 years. This has fundamentally changed the R&D strategies of traditional pharmaceutical companies, resulting in an average cost reduction of 30-40% in drug development.
Acceleration of Commercialization in Cell and Gene Therapy
The most notable sector in the biotech industry in 2026 is undoubtedly cell and gene therapy. The global cell therapy market has grown to $28.7 billion by 2026, with a compound annual growth rate (CAGR) of 24.5%. Particularly, the CAR-T cell therapy market alone has reached $15.6 billion, expanding its indications beyond hematologic cancers to solid tumors.
Johnson & Johnson, headquartered in New Jersey, announced that its CAR-T therapy ‘Carvykti’ achieved sales of $782 million in the fourth quarter of 2025, marking an 89% growth compared to the same period the previous year. This result is attributed to its proven efficacy in treating multiple myeloma. Meanwhile, Pfizer, based in New York, has invested $2.5 billion in developing a gene therapy for hemophilia, aiming for commercialization by 2027.
Investment in the cell therapy sector is also surging in South Korea. KOSDAQ-listed Medipost is accelerating the overseas expansion of its umbilical cord-derived mesenchymal stem cell therapy ‘Cartistem,’ recording a 156% increase in sales to 34.2 billion won in 2025 compared to the previous year. Additionally, CHA Biotech is investing 120 billion won in developing immuno-oncology therapies and is conducting a Phase 3 clinical trial for NK cell therapy.
Technological advancements in the cell therapy field are also noteworthy. Novartis, headquartered in Basel, Switzerland, announced a next-generation CAR-T platform at the end of 2025, which reportedly reduces side effects by 50% and improves efficacy by 35% compared to existing therapies. These technological improvements significantly enhance the accessibility of cell therapies, with treatment costs expected to decrease from the current $500,000-$600,000 range to $300,000-$400,000.
Remarkable achievements are also emerging in the gene therapy sector. Gilead Sciences, headquartered in Foster City, California, announced Phase 2 clinical trial results for a gene therapy for sickle cell disease, showing significant symptom improvement in 92% of treated patients. This offers new hope to the 3 million sickle cell disease patients worldwide.
The funding environment for biotech companies is also significantly improving. In 2025, global biotech companies raised a total of $124 billion, an 18% increase from the previous year. Notably, investments in the cell and gene therapy sectors accounted for 34% of the total, indicating growing investor interest. Venture capital firms are also increasing their investments in the biotech sector, with the average investment size rising from $85 million in 2024 to $112 million in 2025.
Changes in the regulatory environment are positively impacting the growth of the biotech industry. In December 2025, the U.S. FDA announced new guidelines to streamline the approval process for cell therapies, expected to reduce the approval period from 18 months to 12 months. The European Medicines Agency (EMA) is pursuing similar policies, and South Korea’s Ministry of Food and Drug Safety is also considering measures to shorten the review period for advanced biopharmaceuticals.
Market experts predict that 2026 will be a turning point for the biotech industry. As the integration of AI and biotechnology accelerates, personalized medicine is becoming a reality. Roche, based in Basel, Switzerland, recently launched an AI-driven personalized cancer treatment platform that analyzes patients’ genomic information to suggest optimal treatment methods. Initial clinical results indicate a 45% improvement in treatment efficacy compared to existing standard treatments.
Competition in the Asian market is also intensifying. Chinese biotech companies are accelerating their entry into the global market, while Japan is demonstrating unique strengths in the regenerative medicine field. In this competitive environment, South Korea is strengthening its competitiveness through the establishment of the K-Bio Belt and the Biohealth New Deal policy. The government plans to invest a total of 18 trillion won in the biohealth sector by 2026, with 40% focused on cell and gene therapy.
When forecasting the future of the biotech industry, the most noteworthy trend is the convergence with digital healthcare. As real-time health monitoring becomes possible through wearable devices and IoT technology, the boundaries between preventive medicine and personalized treatment are blurring. This enables the emergence of new business models, and traditional pharmaceutical companies are strengthening their collaborations with digital healthcare firms. For investors, companies possessing such convergent technologies are analyzed to offer greater long-term growth potential, with the valuation of biotech companies equipped with data analysis capabilities and AI technology expected to continue rising.
