OncoInsights
by Laura Vidal, MD
Vice President and Therapeutic Strategy Lead for Oncology
I always appreciate conferences that leave me with lingering questions and new areas to explore when I get home. This was certainly the case after my attendance at the ESMO TAT conference held in Paris in March 2025. The event brought together a diverse group of stakeholders—pharma, biotech, investigators, and regulators—to discuss the latest advances in early-stage oncology. The discussions were incredibly thought-provoking, and I left with many open questions about the future of cancer treatment and the collaborative efforts needed to move these innovations forward.
Physicians usually focus on the latest scientific advances that are relevant to our clinical practice, which helps keep us centered on what we need to do to improve patient care. However, beyond the novel targets, radioligands, and cell therapy modalities that are emerging as trends, there is a noticeable shift in the oncology ecosystem that attracted interesting discussions. A key issue highlighted at the conference was the growing gap in funding support for basic research and biotech companies, which are truly at the forefront of innovation. Over 80% of oncology drug candidates in development originate from agile biotech companies.1 While larger pharmaceutical companies have the resources to push advanced therapies forward, small biotech companies are often the ones pioneering the next breakthrough treatments. This lack of financial backing, particularly for early-stage research, is a crucial challenge that the oncology community must address if we are to accelerate the delivery of innovative therapies and ensure that all patients have access to the latest advances in cancer care.
Another significant aspect that goes hand-in-hand with the lack of funding is the regulatory hurdles, particularly in the European Union with the implementation of the new Clinical Trials Regulation (CTR) Directive. While the intention behind this directive is to ensure the safety of patients, it has inadvertently created additional obstacles for bringing clinical studies into the EU. The stricter and more complex regulations surrounding clinical trial approvals, the increased documentation requirements, and the extended timelines for obtaining approvals have made it more challenging for companies to initiate and conduct studies in the EU. As a result, we’ve seen a noticeable decline in the number of clinical trials being brought into Europe, with many companies opting to launch studies in other regions, particularly the United States and, more recently, China. China has transformed from being a "me-too" drug developer to a leader in first-in-class innovation. Today, the country is at the forefront of developing novel therapies, particularly in oncology and other complex therapeutic areas. In fact, China is now responsible for sourcing about one-third of in-licensed molecules globally, underscoring its growing role in the pharmaceutical industry.
There was a general call at the conference for all stakeholders—pharma, biotech, academia, and governments—to collaborate more closely to ensure that appropriate funding is in place to keep the oncology ecosystem vibrant and alive. It’s clear that sustained innovation in oncology requires a collective effort to address the financial and operational challenges that often slow down progress. One area where this collaboration is particularly important is in the role of venture capital (VC), which has the potential to drive innovation by engaging not only with biotech companies but also with academic institutions. VCs are often at the forefront of funding the next big breakthrough, but to secure investment, early-stage oncology research needs to stand out. The mechanisms of action for new drugs must be highly differentiated in the early phases to have a chance of being selected for funding. Investors are looking for innovations that promise to address unmet medical needs, offer significant clinical advantages, and demonstrate a clear path to market. If a novel therapy doesn’t differentiate itself sufficiently, it may struggle to attract the attention of VCs, regardless of its potential.
References
1. Biomedtracker, May 2024