The Biotech Investment Boom and the Reality of Personalized Medicine: An Analysis of the Global Biotech Industry in 2025
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Explosive Growth of the Biotech Market and Investment Trends
As of December 2025, the global biotechnology market has expanded to $1.12 trillion, driving an unprecedented investment boom. According to the latest report by the McKinsey Global Institute, this figure represents an 18.5% increase compared to 2024, fueled by the commercialization of AI-driven drug development, personalized medicine, and gene therapy technologies. Notably, venture capital and private equity investments in biotech reached $68 billion in the first half of 2025 alone, accounting for 85% of the total investment in 2024.
This growth is not merely speculative but is grounded in substantial technological innovation. The U.S. FDA approved 47 new biopharmaceuticals by November 2025, 65% of which are treatments for rare diseases or personalized therapies. The European Medicines Agency (EMA) exhibited a similar pattern, approving 31 innovative biopharmaceuticals. South Korea’s Ministry of Food and Drug Safety also completed the approval of 12 domestic biopharmaceuticals this year, a 71% increase from the previous year, thanks to the K-Bio Belt policy.
Investor interest is concentrated in three main areas. First, AI-driven drug development platforms, exemplified by DeepMind’s AlphaFold3 in the UK and Insilico Medicine’s PharmaAI platform in the U.S., are noteworthy for their potential to reduce traditional drug development timelines from 10-15 years to 3-5 years. Second, personalized immunotherapies like CAR-T cell therapy, led by Roche in Switzerland and Gilead Sciences in the U.S., are expected to reach a market size of $18 billion by 2025. Third, the commercialization of CRISPR-Cas9 gene editing technology, with key players like Editas Medicine in the U.S. and Horizon Discovery in the UK, is gaining momentum.
South Korean biotech companies are also making significant strides. Samsung Biologics reported third-quarter 2025 sales of 1.24 trillion KRW, a 34% increase from the same period last year, maintaining its industry-leading position with a 23% global market share in ADC (antibody-drug conjugate) contract manufacturing. Celltrion achieved global sales of 2.86 trillion KRW in the biosimilar market, representing an 18% market share. SK Biopharm focused on central nervous system disorder treatments, with its epilepsy drug ‘Xcopri’ surpassing $230 million in U.S. market sales following FDA approval this year.
The Convergence of AI and Personalized Medicine: The Forefront of Technological Innovation
The most notable change in the biotech industry in 2025 is the full-scale convergence of artificial intelligence and personalized medicine. Google’s DeepMind developed AlphaFold3, which increased protein structure prediction accuracy to 95.7%, accelerating the discovery of drug candidates by 40 times compared to traditional methods. Insilico Medicine, headquartered in Boston, Massachusetts, utilized its AI platform to discover a candidate treatment for idiopathic pulmonary fibrosis in just 18 months, now in Phase 2 clinical trials—a process traditionally taking 5-7 years.
In personalized medicine, the rapid decline in genome analysis costs is accelerating commercialization. Illumina’s latest NovaSeq X Plus system reduced whole-genome sequencing costs to $200 per genome, a 75% decrease from 2020, significantly improving access to personalized therapies. Roche’s Foundation One CDx test was conducted 450,000 times globally in the first half of 2025, establishing personalized cancer treatment strategies.
CAR-T cell therapy has become a hallmark success story of personalized medicine. Novartis’ Kymriah and Gilead Sciences’ Yescarta, both based in Pennsylvania, achieved combined sales of $6.7 billion in 2025. Notably, Gilead’s Tecartus demonstrated a complete remission rate of 67% in treating relapsed mantle cell lymphoma, proving superior to existing therapies. In South Korea, GC Cell’s CAR-T therapy showed promising results in Phase 1/2 clinical trials, aiming for commercialization by 2026.
The commercialization of CRISPR gene editing technology is also accelerating. Vertex Pharmaceuticals and CRISPR Therapeutics in the U.S. co-developed CTX001, enabling over 95% of patients with sickle cell disease and beta-thalassemia to live without transfusions. Despite a U.S. price of $2.2 million per patient, it is considered cost-effective given the lifelong reduction in medical expenses. Editas Medicine in the UK confirmed vision improvement effects in clinical trials of EDIT-101 for Leber congenital amaurosis, a hereditary blindness disorder, preparing for commercialization in 2026.
The advancement of biomarker-based companion diagnostics is also noteworthy. Guardant Health’s liquid biopsy technology, Guardant360, can detect mutations in 74 genes from blood samples, with 1.8 million tests conducted in 2025, a 45% increase from the previous year, revolutionizing early cancer diagnosis and personalized treatment selection. South Korea’s Macrogen, with its proprietary whole-genome analysis service, holds a 35% market share in the Asian market, contributing to the spread of personalized medicine.
Global Competitive Landscape and Future Outlook
As of 2025, the global biotech market is witnessing fierce competition between established players in the U.S. and Europe and emerging companies in Asia. According to Evaluate Pharma, U.S. companies maintain a leading position with a 47% market share, but the rise of Asian companies, particularly from China (23%) and South Korea (8%), is notable. China’s BioGenIdec and WuXi Biologics are rapidly growing in the global CDMO (Contract Development and Manufacturing Organization) market, with market shares of 15% and 12%, respectively.
Among U.S. companies, Johnson & Johnson achieved $58 billion in biopharmaceutical sales in 2025, maintaining its industry-leading position. In the immunology sector, Stelara and Tremfya recorded annual sales of $9.5 billion and $2.8 billion, respectively. Pfizer, despite a decline in COVID-19 vaccine sales, achieved $42 billion in biopharmaceutical sales by strengthening its oncology portfolio, with CDK4/6 inhibitor Ibrance and ALK inhibitor Lorbrena serving as key growth drivers.
In Europe, Switzerland’s Roche holds a dominant position in personalized medicine. Roche’s companion diagnostics division recorded $4.5 billion in sales in 2025, representing a 28% market share in the personalized medicine sector. The combination of HER2-positive breast cancer treatment Herceptin and next-generation ADC therapy Enhertu raised treatment success rates to 85%. Denmark’s Novo Nordisk saw a 67% increase in 2025 sales to $28 billion, driven by the weight loss effects of its diabetes treatment Ozempic.
In Asia, the growth of Chinese and South Korean companies is remarkable. China’s Baidu discovered 15 new drug candidates through its AI-driven drug development platform ‘LinBo,’ with three entering clinical trials. In South Korea, Samsung Biologics leads the global biopharmaceutical CDMO market with a 23% market share, establishing a production capacity of 360,000 liters in Incheon Songdo and Cheonan, the largest for a single company worldwide.
From an investment perspective, the IPO market for biotech companies in 2025 is vibrant. The Nasdaq Biotechnology Index rose 28% from the beginning of the year, with AI-driven drug development and personalized medicine companies receiving high valuations. U.S.-based Recursion Pharmaceuticals, leveraging its AI platform, achieved a market capitalization of $4.5 billion, while the UK’s BenevolentAI raised $1.2 billion through its IPO.
However, challenges remain. The complexity of the regulatory environment is increasing, particularly with unclear approval criteria for AI-based medical devices and personalized therapies. The FDA released new guidelines for AI/ML-based medical devices in 2025, but controversies over clinical trial design and safety evaluation methodologies persist. Additionally, the high cost of personalized medicine limits accessibility. For CAR-T therapy, the average treatment cost per patient ranges from $400,000 to $500,000, highlighting the urgent need for expanded insurance coverage.
Looking ahead to 2026, the biotech market is expected to continue its growth trajectory. Deloitte Consulting forecasts the global biotech market to reach $1.35 trillion in 2026, with personalized medicine accounting for 35% and AI-driven drug development for 28%. The high growth potential of the Asian market is anticipated, with an average annual growth rate of 22% projected through 2026. This growth is expected to be driven by the aging population, the increase in chronic diseases, and the expanding demand for personalized medicine.
This analysis is based on information available as of December 11, 2025, and additional research and expert consultation are recommended for investment decisions.
